Dell Inc has reported a 79% decline in its profits as sales for personal computers continued to contract in the face of greater demand for mobile devices. The financial backdrop is what Carl Icahn, billionaire investor and Michael Dell, current CEO and founder, are fighting for with their repective bids.
The reports give credence to the efforts of Michael Dell, saying that privatizing the company would allow it to refocus its efforts from being a computer manufacturer to a company that provides enterprise computing services. According to Dell, the change is best done within the confines of a private company instead of under public scrutiny.
Dell's announcements include revenue from enterprise solutions, services and software increased by 12% to US$5.5 billion compared to overall revenues falling 2% especially PC sales declined by 9% overall.
In order to forestall any issues and move towards enterprise business solutions against entrenched players such as IBM and HP, Dell is now putting focus on research and development as well as sales research to assist or even expand its markets.
On the other hand, Icahn is saying that the privatization offer from Dell is too low when the company is seeking to become a market leader for enterprise computing. They propose the installation of new leadership as well as additional cash or stock for its shareholders.
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