Credit: Shutterstock photoDell's ( DELL ) core business as a personal computer manufacturers puts the company in competition with big names like HP ( HPQ ), Apple ( AAPL ), Acer (TPE:2353) and Toshiba. But Dell has lately diversified away from its core business by acquiring high-end technologies, such as storage and security systems, as well as extending its services portfolio. (See Could Dell's Cloud Push Complete its Transition to a Service Firm? )
In a recent interview with The Wall Street Journal Mr. Dell, the founder and chief executive of Dell Inc., talked about the firm's strategic shift:
Two-thirds of Dell's profit is not the PC. Of the one-third that is the PC, the vast majority of that is not consumer. I'm just level-setting what Dell is today, because I think a lot of people look at Dell and they go, "Oh, Dell is a consumer PC company." That's not really at all what Dell is today.
Our estimates show that the PC business (including both desktops and notebooks) is worth only 23% of the company's stock value, which we pin at $22.39 - our number notably stands about 40% above market price. The low value contribution of the PC business, coupled with the fact that tablets pose a rising threat to the PC genre, create a substantial incentive for Dell to pursue its strategic shift into other produce lines.
See our complete analysis for Dell stock here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
