Surface tablet less than 2 percent of market, says Dell
Michael Dell said today he expects sales of Microsoft's Surface to be "relatively small."
The Dell founder and chief executive commented on Microsoft's upcoming tablet during the PC maker's second-quarter earnings conference call this afternoon.
"I think there's an understanding of the number of units that they're likely to sell is a relatively small percentage. Maybe in the 1 [percent] to 2 percent range of total PC units during next year," Michael Dell said in response to analyst's question.
CFO Brian Gladden also had something to say. "[About] Microsoft entering the space -- we've spent time speaking to Microsoft and understanding how they're thinking about it. There clearly are opportunities for us as Windows 8 comes through and how we differentiate our products."
Gladden continued. "At the same time they've announced the Surface product that will be in that space and we'll have products in there. I think you'll see a diverse set of offerings that take advantage of what Windows 8 brings to market," he said.
Gladden also talked about weakness in PCs. "The desktop and mobility business was down 14 percent...in a challenging environment," said Gladden. "The revenue deterioration was above anything we expected."
PCs are losing out to tablets and smartphones. "We also continue to see discretionary spending directed to alternative local devices like tablets and smartphones," he said.
Dell will respond with tablets and hybrid devices. "We're positioned to be a leader in addressing the emerging BYOD (Bring Your Own Device) trend with...our upcoming tablets and converged devices. You'll see new Windows 8 ultrabooks, all-in-ones, tablets, converged devices in the fourth quarter and headed into next year," Gladden said.
Dell today reported second quarter revenue of $14.48 billion, a 7.5 percent decline from the same period in the previous year. The company expects third-quarter revenue to decline two percent to 5 percent sequentially.
Dell posted a profit of $732 million, or 42 cents a share, off from the $890 million, or 48 cents a share, reported a year earlier.
It's bound to flop from the start. No one is interested in Microsoft making hardware. They should stick to software. There won't be a hit Windows 8 tablet until Nokia (MS's main OEM) makes one.
Dell needs to stick making PCs and laptops (of which I greatly support, Alienware is the absolute BEST brand for laptops, go away apple fans)
If MS' tablet flops, then they learn that they need to stick to software, they'll still make a profit as MS isn't dumb enough to produce Atari-levels of Surfaces.
It's bound to flop from the start. No one is interested in Microsoft making hardware. They should stick to software. There won't be a hit Windows 8 tablet until Nokia (MS's main OEM) makes one.
Which is why the Xbox360 is one of the best selling consoles of all time.
I already know an Apple Troll is going to make this. But we'll see.
Yes we'll see. Microsoft will be lucky if they can manage to outsell Samsung's abysmal tablet numbers. Again, we will see when the receipts come out this holiday season.
But we'll see.
,win 7 is way better than win 8 tbh
