Editing Dell (section)

===Attempts at diversification===
[[File:IFA 2010 Internationale Funkausstellung Berlin 57.JPG|thumb|Dell Streak smartphone]]
The release of Apple's [[iPad]] [[tablet computer]] had a negative impact on Dell and other major PC vendors, as consumers switched away from desktop and laptop PCs. Dell's own mobility division has not managed success with developing smartphones or tablets, whether running Windows or [[Android (operating system)|Android]].<ref>{{cite news|last=Arthur |first=Charles |url=http://www.guardian.co.uk/technology/2012/nov/16/dell-revenues-slump-pc-tablet-smartphone |title=Dell revenues slump as tablets and smartphones eat into market &#124; ''The Guardian''. |work=The Guardian |access-date=April 27, 2013 |location=London |date=November 16, 2012}}</ref><ref name="beta.fool">{{cite web |last=Sun |first=Leo |url=http://beta.fool.com/leokornsun/2013/02/20/death-dell/25021/ |title=The Death of Dell – AAPL, DELL, GOOG, HPQ, MSFT – Foolish Blogging Network |publisher=Beta.fool.com |date=February 20, 2013 |access-date=April 27, 2013 |archive-url=https://web.archive.org/web/20130328094746/http://beta.fool.com/leokornsun/2013/02/20/death-dell/25021/ |archive-date=March 28, 2013 |url-status=dead}}</ref> The [[Dell Streak]] was a failure commercially and critically due to its outdated OS, numerous bugs, and low resolution screen. ''InfoWorld'' suggested that Dell and other OEMs saw tablets as a short-term, low-investment opportunity running [[Google Android]], an approach that neglected user interface and failed to gain long term market traction with consumers.<ref>{{cite web |last=Gruman |first=Galen |url=https://www.macworld.com/article/1159578/anatomy_of_failure_rim_microsoft_nokia.html?page=2 |title=Anatomy of failure: Mobile flops from RIM, Microsoft, and Nokia |work=MacWorld |access-date=April 27, 2013 |archive-date=August 9, 2020 |archive-url=https://web.archive.org/web/20200809193417/https://www.macworld.com/article/1159578/anatomy_of_failure_rim_microsoft_nokia.html?page=2 |url-status=dead }}</ref><ref>{{cite news|url=http://business.financialpost.com/2012/11/15/dell-hp-earnings-expected-to-mark-death-of-pc-era/ |title=Dell, HP earnings expected to mark death of PC era &#124; Financial Post |newspaper=Financial Post |publisher=Business.financialpost.com |date=November 15, 2012 |access-date=April 27, 2013|agency=Bloomberg News }}</ref> Dell has responded by pushing higher-end PCs, such as the XPS line of notebooks, which do not compete with the [[Apple iPad]] and [[Kindle Fire]] tablets.<ref>{{cite news |url=http://tech.fortune.cnn.com/2012/04/06/dell/ |title=The Dell dilemma – Fortune Tech |work=Fortune |date=April 6, 2012 |access-date=April 27, 2013 |archive-url=https://web.archive.org/web/20130401080037/http://tech.fortune.cnn.com/2012/04/06/dell/ |archive-date=April 1, 2013 |url-status=dead}}</ref> The growing popularity of smartphones and tablet computers instead of PCs drove Dell's consumer segment to an operating loss in Q3 2012. In December 2012, Dell suffered its first decline in holiday sales in five years, despite the introduction of [[Windows 8]].<ref>[https://www.reuters.com/article/us-dell-buyout-idUSBRE91D19C20130214 "Dell CEO agreed to lower shares' value to push $24 billion buyout"]. ''Reuters''. February 14, 2013</ref>

In the shrinking PC industry, Dell continued to lose market share, as it dropped below [[Lenovo]] in 2011 to fall to number three in the world. Dell and fellow American contemporary Hewlett Packard came under pressure from Asian PC manufacturers Lenovo, [[Asus]], and Acer, all of which had lower production costs and were willing to accept lower profit margins. In addition, while the Asian PC vendors had been improving their quality and design—for instance, Lenovo's [[ThinkPad]] series was winning corporate customers away from Dell's laptops—Dell's customer service and reputation had been slipping.<ref>{{cite news| url=https://www.nytimes.com/2013/02/10/your-money/at-dell-a-gamble-on-a-legacy.html | work=The New York Times | first=Jeff | last=Sommer | title=At Dell, a Gamble on a Legacy | date=February 9, 2013}}</ref><ref>{{cite web|last=Cunningham |first=Andrew |url=https://arstechnica.com/gadgets/2012/10/lenovo-and-asus-are-up-dell-and-hp-are-down-and-pc-sales-are-slowing/ |title=Lenovo and Asus are up, Dell and HP are down, and PC sales are slowing |website=Ars Technica |date=October 10, 2012 |access-date=April 27, 2013}}</ref> Dell remained the second-most profitable PC vendor, as it took 13 percent of operating profits in the PC industry during Q4 2012, behind Apple's Mac that took 45 percent, seven percent at Hewlett Packard, six percent at Lenovo and Asus, and one percent for Acer.<ref>[http://www.channelregister.co.uk/2013/04/17/apple_macs_profits/ "PC floggers scavenge for crumbs as Apple hoovers up profits • The Channel"]. ''channelregister.co.uk''.</ref>

Dell attempted to offset its declining PC business, which still accounted for half of its revenue and generates steady cash flow,<ref>{{cite news |author=Aaron Ricadela |url=http://washpost.bloomberg.com/Story?docId=1376-MGQYI21A74E901-4T7RPT9E2ET8T8I5GR6KM8ULT8 |title=Business: Washington Post Business Page, Business News |publisher=Bloomberg L.P. |date=February 6, 2013 |access-date=April 27, 2013 |archive-url=https://web.archive.org/web/20130601052217/http://washpost.bloomberg.com/Story?docId=1376-MGQYI21A74E901-4T7RPT9E2ET8T8I5GR6KM8ULT8 |archive-date=June 1, 2013 |url-status=dead}}</ref> by expanding into the enterprise market with servers, networking, software, and services.<ref>{{cite news|last=Schofield |first=Jack |url=https://www.zdnet.com/article/the-love-of-mike-what-you-need-to-know-about-dells-buy-out/ |title=The love of Mike: What you need to know about Dell's buy-out |work=ZDNet |date=February 6, 2013 |access-date=April 27, 2013}}</ref> It avoided many of the acquisition write-downs and management turnover that plagued its chief rival Hewlett Packard.<ref name="beta.fool" /><ref name="chron.com">{{cite web|url=https://www.chron.com/business/steffy/article/Steffy-HP-Dell-fight-to-stay-relevant-4062878.php |title=HP, Dell fight to stay relevant |work=Houston Chronicle |date=November 24, 2012 |access-date=January 9, 2014}}</ref> Despite spending $13 billion on acquisitions to diversify its portfolio beyond hardware,<ref name="bloomberg.com">{{cite news |last=Carey |first=David |date=September 13, 2013 |title=Silver Lake Investors Said to See Dell as Mixed Blessing |url=https://www.bloomberg.com/news/2013-09-13/silver-lake-investors-said-to-see-dell-as-mixed-blessing.html |access-date=January 9, 2014 |publisher=Bloomberg}}</ref> the company was unable to convince the market that it could thrive or made the transformation in the post-PC world,<ref name="chron.com"/> as it suffered continued declines in revenue and share price.<ref>{{cite news|last=Worthen |first=Ben |url=http://online.wsj.com/article/SB10000872396390444812704577605703329715394.html |title=H-P, Dell Struggle as Buyers Shun PCs |work=The Wall Street Journal |date=August 22, 2012 |access-date=June 22, 2013}}</ref><ref>{{cite news|last=Arthur |first=Charles |url=http://www.guardian.co.uk/technology/2012/nov/16/dell-revenues-slump-pc-tablet-smartphone |title=Dell revenues slump as tablets and smartphones eat into market |work=The Guardian |date=November 16, 2012 |access-date=June 22, 2013 |location=London}}</ref><ref>{{cite web|author=Jeffrey Burt |url=http://www.eweek.com/pc-hardware/dell-finances-continue-to-be-hit-by-struggling-pc-market/ |title=Dell Finances Continue to Be Hit by Struggling PC Market |publisher=Eweek.com |date=November 15, 2012 |access-date=April 27, 2013}}</ref><ref name="economist">{{cite news|publisher=Schumpeter Business and management |url=http://www.economist.com/blogs/schumpeter/2013/02/dells-buy-out |title=Dell's buy-out: Heading for the exit |newspaper=The Economist |date=February 5, 2013 |access-date=April 27, 2013}}</ref> Dell's market share in the corporate segment was previously a "moat" against rivals but this has no longer been the case as sales and profits have fallen precipitously.<ref>{{cite news|url=https://www.forbes.com/sites/steveschaefer/2013/09/12/michael-dell-finally-sews-up-buyout-now-for-the-hard-part/print/ |title=Michael Dell Finally Sews Up Buyout, Now For The Hard Part |work=Forbes |date=December 9, 2013 |access-date=January 9, 2014 |first=Steve |last=Schaefer}}</ref>