Yesterday Dell released their quarterly earnings, and watched their stock price drop. While a 10% drop in one day is massive in the stock market, it was only a 1.58 point drop. Is Dell in trouble?
One of the most common criticism of the Dell computer brand is their failure to innovate. Almost every single computer Dell makes is exactly like the rest, and they lag behind the market when it comes to development. They followed suit in the Netbook market, as well as the ultra-thin ultra-expensive MacBook Air market. Dell's stock has dropped more than 10% over the last 24 hours.
Dell targets large enterprise sales over smaller one-to-one consumer sales. Most large companies are using Dell computers, as they are reliable and cheap. Due to the unpopularity of Windows Vista, many companies did not upgrade their machines, and are still using technology from 2003 and older.
Dell does not have a large share in the consumer market, as they do not sell their laptops in as many retail stores. They focus on online sales, with customizability of their hardware. Dell needs to cut costs and raise profits if they plan to keep their business over the next decade.
Windows 7 has only been out for a month now, and I am predicting higher sales for Dell in both the consumer and enterprise markets. Once large companies begin to roll out Windows 7, Dell should be able to show some profit for their shareholders. Until now, we can expect the stock to continue losing value.
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