Smartphones or Servers? Dell Comes to a Fork in the Road

Michael Dell faces some hard choices about where to take the company that bears his name, now that shareholders have approved his bid to take Dell private.

Michael Dell is aiming to complete the takeover by the end of the third quarter. Once that’s done, he’ll have to begin the long process of turning the Round Rock PC maker around.

Jonathan Marino is senior editor with The Deal. He says Dell and his investment partners will have to choose whether to focus on consumer electronics or on business services.

“If it’s the former, then they’re going to have to move into markets like Asia, where they’re going to be competing, I guess, in a little bit more of a fractured market for smartphone users and tablet users — places where the Apple and the Google products haven’t become as sticky as they’ve become in U.S. markets. If they go for the latter option, then they would probably behave a lot more like IBM. That would entail them doing a lot to fix up their server business, make it a lot more mobile, make it a lot less based in actual physical server storage within companies.”

Dell and his partners will pay nearly $25 billion to take the company private. Shareholders approved the buyout on Thursday.


Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas delegations in the U.S. House and Senate, as well as the Texas governorship, the state legislature, and county and city governments. Before taking up his current post, Andrew...

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