It was a bad week for Dell and Hewlett-Packard as both companies reported results that disappointed Wall Street.
Dell reported that profit fell 33% as sales were hurt in part by what one analyst termed the Apple effect as consumers and businesses embracing the bring-your-own-device model are picking Apple products. Dell is in the midst of transitioning out of consumer and low-margin products into servers and services for the enterprise, but the popularity of Apple is hurting Dell's bottom line, at least in the short term.
The Apple effect is also dinging the other personal tech giant: Hewlett-Packard. HP is in the process of cutting 28,000 employees as Meg Whitman (the latest in a revolving door of CEOs) tries to sort out the consumer, enterprise, and commercial businesses. The Apple effect is in full bloom in the consumer sector and may even be reaching into the once high-profit margin printer business. I'm positing the widespread use of tablets means fewer documents are getting printed, but I can't back that up yet. Read More
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