Do you know the largest technology buy out this year? Despite the 12% decrease in sales for personal computers, Dell still managed to capture Microsoft’s interest. Microsoft is reportedly planning to participate in the Dell buyout investing more than $3 billion, and Dell according to sources may receive an astonishing $22 billion for the upcoming event if all ends well. With the decrease of sales of personal computers, people may wonder why Microsoft will push through this.
Consumers are now shifting their attention to Tablets and more compact devices like laptops and Smartphone’s so a decline in personal computer purchase is imminent. In an ideal setting, people would buy both the Tablet and personal computer, but however tech savvy we are, money and convenience is still an issue so the Tablet may continue to rise. Instead of buying a new PC, people will just invest in a more advanced Tablet that they can bring anywhere anytime.
More than 50% of Dells revenue lean on sales for personal computers, so if they want to survive the competition, they may have to rethink their strategy and attempt to break into the Tablet mania by offering their own version of it. Developing software’s should also be a top priority as they would surely earn for it. So why would Microsoft invest in a company that largely supports a product with declining sales? Steve Ballmer CEO of Microsoft sees this buyout as a great return of investment. Dell is has always been a Windows user and the ties between the two companies have never been greater.
Microsoft can also afford to take the risk because they have more than enough money to spare if ever anything goes wrong. They even invested in the Smartphone wars, with Nokia Lumia and HTC at the front, which was received pretty well by the consumers. Dell should also start participating in this, and produce their own line of Smartphone’s using Windows as their OS if they want to capture the consciousness of the consumers once again. Whatever happens, the tie up between Microsoft and Dell only means great things for the tech hungry consumers out there.