Tomahawk, WI 8/13/2013 (Basicsmedia) – Dell Inc. (NASDAQ:DELL) is facing an uncertain future, primarily due to the fact that PC sales are falling. The world has taken in to tablets and iPads thus abandoning PCs, and the revenue from these devices is on the decline, and has been for quite some time. Earlier this year, the company saw it fit to go private and perhaps the poor sales occasioned by the decline in demand for PCs might have played a role in this turn of events. This article seeks to examine what the company can do to survive so that it doesn’t end up disappointing its plethora of investors.

5dell

Image shows how much profit Dell and other companies received from PC sales. Image is from www.tech.fortune.cnn.com

Areas Which Dell Must Focus on to Survive

The first question which top executives in Dell need to ask is whether their place is still in the PC market, or not. At the moment, everything points to the fact that the company still has a role to play in the PC industry or market. However, it’s hard to tell if the company will be successful in this field going forward or whether it needs to start thinking of alternative products and services which it can embark on in order to survive. Dell might be forced to rethink its earlier decision to avoid tablets, in addition to notebook space and low value desktop. Its future depends on these.

Dell Can’t Abandon the PC Market Entirely

However, whereas it is true that the company may have to rethink its strategy going forward, it still can’t get out of the PC world. The long standing relationship which the company already has with corporate, especially in the U.S, is something it can’t wish away or neglect. Dell may only have to think about refreshing the older PCs which it probably sold to these companies as it moves forward. Most IT specialists in the corporate world only upgrade their software when the have the chance to do the same with the hardware, and this is a market which Dell can still serve.

The success of Dell going forward would hinge on how Windows 8 performs in the market. If the software outperforms what the industry experts have been saying for a while, there is cause for optimism to the effect that Dell will see an increase and demand for its products and services. If this were to happen, Dell will have a reason to look forward to increased revenue, which is the sort of news investors love to hear. I think anyone writing Dell off at this point in time is set for a rude shock because the firm still has a good future, even if it’s not as bright as was alluded to.

Dell Should Be InnovativeTechnologically, the world is at a place which not very many had foreseen a few years ago. The world is at a place where people are able to roll out their own servers. Virtualization keeps being bandied about, to the consternation of companies such as Dell. This is the uncertain future to which Dell must adapt to or lose its place as a market leader. The could is another aspect of the modern technology which might have a bearing on Dell’s performance in the coming days. But, I believe that Dell will adapt and continue rewarding its shareholders handsomely.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.