Dell: PC, mobile businesses important to company

13.10.2011
Dell CEO Michael Dell on Wednesday said the company remains committed to its PC and mobile device businesses, saying it will provide savings that could help grow the enterprise business.

There are economic benefits as the PC business plays a role in acquiring enterprise hardware at cheaper rates, Dell said at the Dell World event being held in Austin, Texas. Close to 95 percent of the disk drives, memory and processors acquired go into PCs, and buying those components in volume helps build commodity hardware servers at lower costs.

"From a cost standpoint, you get enormous scale," Dell said.

Dell mostly builds its servers around x86 microprocessors from Intel and Advanced Micro Devices. The company is making a larger push into the enterprise by building its software, hardware, networking and services portfolio, and the company has no plans to give up its PC business, Dell said.

Dell's comments came as HP . HP in August said it will spin-off or sell the Personal Systems Group, which deals in PCs and mobile devices, in an effort to focus on the higher-margin enterprise business. A final decision on the PC business from HP is expected by the end of this month.

The profits of many PC makers have been hurt by razor-thin margins, which was one reason HP cited for dumping its PC business. Dell has been preying on that uncertainty, saying that HP's indecision has provided an opportunity to gain new customers.