Dell blames 'uncertain adoption' of Windows 8 for some of its financia

Night Hawk · Mar 31, 2013

It goes to show to some extent why the OEMs have been fearing the latest version as well as the MS trend for small devices to run Win 8 on.

Dell blames 'uncertain adoption' of Windows 8 for some of its financial woes

Paints a gloomy picture of the PC business, emphasizes Windows 8 troubles and a decrease in Windows 7 sales

By Gregg Keizer
March 30, 2013 01:49 PM ET

Computerworld - Dell blamed Microsoft's Windows 8 as one of several causes for its grim financial future, according to a filing with securities regulators.

"The difficult environment faced by the Company as a result of its underperformance relative to a number of its competitors [includes] ... the uncertain adoption of the Windows 8 operating system," Dell said in a lengthy proxy statement filed Friday with the U.S Securities and Exchange Commission (SEC).

The proxy statement laid out Dell's case for shareholders accepting a $24.4 billion offer, led by its founder and CEO, Michael Dell, to take the PC maker private. Michael Dell has joined with private-equity firm Silver Lake Partners to buy the company, with Silver Lake in turn tapping Microsoft for a $2 billion contribution.

Michael Dell's proposal has been threatened by recent counter-offers from private-equity fund manager Blackstone and a group coordinated by investor Carl Icahn.

In the proxy, Dell also blamed other factors for its troubled PC business, including "unexpected slowdowns in enterprise Windows 7 upgrades," as well as a lengthening PC replacement cycle and a rush to the bottom toward lower-margin systems. The Round Rock, Texas company also cited the widely-reported shift in consumer dollars from PCs to tablets and smartphones.

Dell acknowledged that it's not playing in the hottest technology markets, admitting that it sells only "limited quantities" of tablets and doesn't manufacture smartphones.

While the blame placed on Windows 8 was not a surprise -- reports of sluggish sales have dogged the operating system since its launch in October -- Dell's naming Windows 7 was.

What's striking is that Dell is better known for selling PCs to enterprises than to consumers. Slowing sales of Windows 7 machines at Dell may indicate that corporations have largely completed their migrations from Windows XP.

see two page report

mart4494 · Apr 1, 2013

This is yet another manufacturer blaming W8 for poor sales. Why oh why did they put an OS which is obviously designed for touch screens onto a desktop/laptop system. If I go into my local PC superstore every laptop is displayed with W8 on it even though they would be better off with W7. The sales staff aren't really particularly helpful either as many of them simply don't understand where you go without a start menu.

Surely Dell and others would have been aware of this problem so whilst W8 may not have taken off as hoped they should also take some of the responsibility for failing to read the market correctly.

There's also the point that the market has hit maturity. Many folks that bought a desktop/laptop in the past for web browsing/emailing/social networking could easily have achieved that with a tablet if they had been available. In my case there is little (or no) point in upgrading the hardware simply to have the latest. A few milliseconds here and there isn't going to make any difference in the real world.

Where M$ have failed IMO is getting across the real world benefits of upgrading from W7 to W8. Just maybe there aren't any.

johngee · Apr 1, 2013

I wonder what would have happened (and even still could happen) if the major "name brand" PC manufacturers (Dell, Lenovo, Asus and all the rest) had dug their combined heels in and insisted that MS either retained 7 alongside 8, or configured 8 in a way that looked like, and behaved like, 7 but with 8 "under the hood"?

Layback Bear · Apr 1, 2013

OR maybe if Microsoft runs the PC makers out of business and we get a operating system we don't want plus a PC made the way we don't want. Made by a company with a major stock holder being Microsoft.
Na that could never happen could it?

OvenMaster · Apr 2, 2013

johngee said:
I wonder what would have happened (and even still could happen) if the major "name brand" PC manufacturers (Dell, Lenovo, Asus and all the rest) had dug their combined heels in and insisted that MS either retained 7 alongside 8, or configured 8 in a way that looked like, and behaved like, 7 but with 8 "under the hood"?

My guess is that M$ would have told them to pound sand. The future is in tablets, dammit, and you're going to go along with us or go hungry.

Night Hawk · Apr 2, 2013

You have to wonder about what MS would come out with for a new line of desktops probably seeing an IPad or Android almost lookalike gui on a 24" lcd! Brilliant!

Sony as well as a few others which Dell didn't take motice of apparently "knew" 8 would tank with the RT gui and no options for any type of standard desktop gui to find. Those other companies worked up their own substitutes and will likely be better off with more keeping their new 8 machines.

As for Dell that was the company promoting OS of choice when ordering from them! Apparently they forgot to include that option for the new lineup of 8 models?!

They can only blame themselves for that no matter what you think about 8 for good or bad they fumbled up on their own promises of "choice of OS" while others improvised some type of solutions for the RT/Metro blonder.

Dallas 7 · Apr 2, 2013

I think what's happening to Dell is just the tip of the iceberg. I think Microsoft's W8 debacle has the potential to wreak havoc around the industry. Their systematic destruction of the desktop is only getting started, and it's already sending out shock waves in every direction.

HarryHusker · Apr 2, 2013

Layback Bear said:
OR maybe if Microsoft runs the PC makers out of business and we get a operating system we don't want plus a PC made the way we don't want. Made by a company with a major stock holder being Microsoft.
Na that could never happen could it?

That sounds like an issue for the SEC!!

fishnbanjo · Apr 2, 2013

I see a Windows 8 PC rev..........

Layback Bear · Apr 2, 2013

May be the Federal Trade Commision. FTC.

HarryHusker · Apr 2, 2013

Layback Bear said:
May be the Federal Trade Commision. FTC.

Or both!!!

Night Hawk · Apr 2, 2013

Well to see more domestic jobs that would take less import of hand helds and putting more people to work asembling desktops(OEM) as well as laptops. But you still need an OS to run on them! "No tablet on desktop gui please!" "awwww... too bad! This is what you get!" says MS in reply. :eek:

:sarc:

With a slumped economy and people more worried about making ends meet as well as job security or simply waiting to find work so they can buy things people tend to look for less costly alternatives when looking for something new to cheak the mail and browse the web. For a few C notes being a lot less then a new OEM desktop or laptop at times those Smarty pants phones are more inviting as well as the Kindle flies and Tablets with whatever OS is on them!

Dell blames 'uncertain adoption' of Windows 8 for some of its financia

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