Dell Is No Longer About PCs?

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In an interview with CNBC, Michael Dell, the founder, chief executive, and chairman of Dell (NASDAQ:DELL), said that his company isn’t just about PCs anymore. Dell claimed that servers are a lot more profitable than personal computers, and contribute to approximately half of his company’s profits.

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Dell has begun to shift its focus to its growing $2.75 trillion enterprise IT business. But the company, which witnessed a significant drop in earnings last quarter and has fallen behind Hewlett-Packard (NYSE:HPQ) and Acer in terms of market share, still needs its PC business, which gives it the scale it needs to deal with component suppliers who are willing to give it good prices on parts like chips and hard drives and all the other things it needs to build a server.

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To contact the reporter on this story: Diallah Haidar at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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