Dell sees `uncertain´market after bombs
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Michael Dell, chairman and CEO of Dell Computer, said Monday it was too soon to gauge the effect of military action in Afghanistan on both personal computer sales and the financial markets. Speaking at a Rome venture capital conference, Dell said, "With the prospect of continued military action, there will be a process of uncertainty." Dell was confident his company, the No. 1 personal computer maker, would continue to build market share in the United States and Europe, at the expense of Compaq, Hewlett-Packard and other competitors.Dell said the company would continue to spend some $700 million a year on research and development. He also said the company would rely on services, which account for 10 percent of sales, and the storage market for greater growth. He declined to comment on reports that Dell and EMC would enter into a storage-related partnership. "Most of our competitors are unprofitable and losing market share," Dell said.Asked whether the company has seen an increase in corporate computer sales in lower Manhattan after the Sept. 11 terrorist attacks, he cited 80 Dell customers affected by the destruction of the World Trade Center and surrounding buildings. "When you have a tragedy like this, you see both demand and lack of demand," he said. Dell also said Microsoft Windows XP operating system "will help consumer growth" in the computer business.About the pending Hewlett-Packard and Compaq merger, which would create a company that has almost $90 billion of yearly sales, Dell paraphrased an industry analyst. "This is the dumbest deal of the decade and it´s not even 9 1/2 years to go. And that´s not even my quote. It´s a great opportunity for us." Dell was appearing at the European Technology Roundtable Exhibition.
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