Wednesday, October 20, 2010

The collective performance of PC giant slippery slope: Dell clutching straw



"China's SMEs, will be the first to promote world economic recovery momentum!" June 5, president of Dell's small and medium enterprises 鍙茶拏鑺彶鍒╂柉 told reporters, "the economic recovery will be the first to start from small and medium enterprises, if Dell able to grasp the emerging market SMB (Small & Medium Business) business opportunities, then the next three years is expected to become Asia's largest supplier of personal computers shipped. "

A week ago, Dell has just announced the latest quarter disappointed investors earnings. As of May 1 of the first quarter, Dell's profits fell sharply to 290 million U.S. dollars 63%, in addition to taking into account the 185 million U.S. dollars in restructuring charges, the most worrying still is the continued weakness in consumer demand. Company quarter sales decrease of 23% to 12.3 billion U.S. dollars, which means that Dell has experienced 4 consecutive quarters of profit decline and three quarters of consecutive decline in revenue.

"Big macroeconomic environment, the industry is showing a loss, to ensure a stable cash flow, and Kuaisuwancheng Organization Structure Chongzu and strategic adjustment, is Muqian Dell spot." 鍙茶拏鑺彶鍒╂柉 said, Dell Jinnian 1 the global reorganization of the month, Dell will completely independent SMEs, established the world a thousand people SME team, "as long as payment, Dell's technical staff can, through the Internet, for the management of internal business SMEs around the world."

"In times of economic crisis after a new round of market competition, we hope to become the world's No. 1 supplier of small and medium computer." 鍙茶拏鑺彶鍒╂柉 said, "When the traditional slowdown in demand, just a great business strategy adjustment opportunity to serve is not Dell's future Fortune 500 biggest companies, but the Fortune 500 million enterprise. "

PC industry across the board decline

"It's an economic crisis caused by weak market performance, it is to tighten the financial liquidity of the entity chain inhibition and delayed purchases." 鍙茶拏鑺彶鍒╂柉 that rely heavily on past IT giants are no doubt the enterprise market will continue weak, "from several major PC companies of the financial reporting data, the industry hopes the PC market is bottoming out signal has not been confirmed, so the market is still down possible."

Global PC HP's latest earnings boss also revealed that in the past quarter, HP's PC business to mainly its Personal Systems Group revenue fell 19% to 82 million. One notebook revenue fell 13%, while desktop revenue declined 24%. Profit more from a year earlier to 5.44 billion U.S. dollars, fell to 374 million U.S. dollars, fell by more than 45%.

Lenovo Group, the decline is more serious this year, in January -3 months of the fourth quarter, Lenovo loss reached 264 million U.S. dollars, dragged down Lenovo's net loss 226 million U.S. dollars throughout the year, record its biggest ever loss. Another PC giant Acer, also encountered the first quarter net profit decline 31% year on year.

Bleak for the market giants headache, the day of small PC manufacturers do not figure to get better. The latest company filing shows Founder involved in the PC business down, revenues fell 13%, net profit decreased by 68.18% year on year; Great Wall Computer earnings fell Jin Sancheng than last year; HEDY computer operating income over the past 388 million yuan in the first quarter , down 38.97 percent year on year net profit of only 749,000 yuan, down over 62% year on year; Asustek Computer quarter net profit decline was as high as 93.7%.

"As the second quarter, the Women's market-signal yes PC eventually Xuqiurengran weak." ISuppli senior analyst Wen-Jun Gu Xing Ye that if Gong Ying Shang Huan Zheng Chang seasonal Bianhua supply in accordance with this year if the second half of Zhengge marketing chain will face an inventory adjustment.

However, earnings in the latest description of the meeting, HP CEO Mark Hurd that "the economic recession, corporate procurement delays, no doubt accumulated a lot of demand for the market, but the resumption of these needs is uncertain."

鍙茶拏鑺彶鍒╂柉 This is further clear that the economic crisis, the pressure on you pocketbook is comprehensive. However, the general government procurement stages, and large enterprise business adjustment cycle is usually very long, while SMEs using IT 璁惧 needs to create value more strongly than the consumers to their purchases and more flexible, intensive. "So, as the credit pick up, solved the financial problems of SMEs, relying on technology to increase productivity has become the first competition in the market need, SMB has become the first market recovery in PC demand."

SMEs competing Nuggets

"IDC's data shows that last year's small and medium enterprises in the hardware, software and technical services were invested 512 billion U.S. dollars, to 2013, this figure will reach 674 billion U.S. dollars." May 28, HP Senior Vice President Xuejin De said, "SMB market growth certainly is exciting and different from the enterprise-class customers, the needs of SMEs are often many ways, it just may help the system vendors of hardware from simple trading patterns to change the relationship between service model."

For this reason, in recent months, Dell and Hewlett-Packard two PC giants are mustering the strength to meet the needs of SMEs. They introduced zero-interest loans for SMEs new computer, but also through the website and blog to provide all aspects of service, most of which is free of charge.

"Lenovo's business focus is to consolidate and strengthen the advantage in the Chinese market, which relies in large part to the growth of the SME market." Lenovo CEO Yang said the Chinese market, Lenovo has recently introduced a series of targeted SME new computer, including the popular Yang-day IdeaPad notebook PCs and desktop.

Lenovo's business manager in Guangdong area south duplex was disclosed to reporters before ending in December 2009, Lenovo plans to build commercial experience in Guangdong, 60 shops, covering Guangzhou, Zhuhai, Dongguan and other 37 cities, small and medium enterprises has become clear that Lenovo is determined to win segments.

"China has too many small and medium producers, as long as there is money, they can produce and sell. The producers not only in major cities around, and in central and western regions is the engine of economic growth." Fudan University, China Center for Economic Research Director Professor Zhang Jun said.

Zhang Jun agree that economic rebound will take the lead from the start of domestic SMEs, "in many areas, like the fields of SMEs in the production of seedlings, with the water, crops can be long. And China this time 'capital growth' policy on like artificial rainfall, save for a long time of drought 'crops' crucial. "

SMB into a new core business

"In fact on September 19 last year, Dell was held in Hefei, the first large-scale promotion of commercial strategy will play, our SME solutions, plans have begun to penetrate the Chinese market, 3-5." Dell SME General Manager of Greater China, said Xu Chao-yuan.

In the new business strategy, Dell (China) aims to expand the regional coverage - the first phase will be at least 100 3-5 to complete the city, "SME Solution Center" business arrangement.

Hsu Chao-yuan quoted the Ministry of Commerce data show that in 2006 the total number of more than 31.51 million Chinese small and medium enterprises, the total number in 2012 will reach 50 million. "SMEs limited to capital, technology and scale, will be more dependent on the growth of IT services, SMB market, Dell's business is already a core part of development strategies."

Hsu Chao-Yuan also revealed that the channel partners for the regional business this new direct model, Dell's request is in addition to recognition Dell model, but also in storage, servers, has extensive experience in the field, as they represent typical small and medium business enterprises.

鍙茶拏鑺彶鍒╂柉 stressed that: "for SME customers are widely distributed, the lack of dedicated IT staff, need a good service and a comprehensive solution characteristics such as Dell continued research, evaluation and development of innovative ways to communicate with customers." Dell will first be taken to build with partners in the way of SME Solution Center 鍔犻? market coverage objective is end of 2009, Dell products will enter China's 3,000 stores, cities covered Da Dao 1200.







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