Michael Dell Promises: ‘A Big Second Half’ of 2008
Dell’s uneven turnaround may be smoothing out. After three up-and-down quarters of job cuts, product overhauls, and a costly retail blitz, Chief Executive Michael Dell is predicting a strong second half of 2008.
The Dell founder told BusinessWeek in an interview that growth rates for July through December could match or exceed growth in the company’s fiscal first quarter, which ended on May 2. Consumer business sales for the quarter rose 20 percent and unit growth hit 47 percent, outpacing the rest of the PC industry. “We’ve kind of reignited the thing,” says Dell. “You’ll see the growth rate be every bit of that in the second half of the year, whether not more. We’re going to have a big second half.”
Before Dell reclaimed the reins as CEO a year and a half ago, the PC maker suffered nearly two years of declining market share, falling profits, and slower growth. Although the executive, who founded the company in 1984, has made strides toward a turnaround,
Beyond Commodity PCs
Now the company is looking for new ways to expand beyond selling commodity PCs, notebooks, and servers. It’s stepped up the pace of acquisitions, making eight since 2007, compared with half that in the company’s first 22 years. Its founder says Dell plus is gearing up to expand its services business. And PCs are selling overseas at a blistering pace: First-quarter revenue in Brazil, Russia, India, and China…
Original post by Mike
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