Michael Dell Says Broadband, Internet, Global Demand Make Future of PC, Computer Industry Stronger Than Ever
quotes.freerealtime.com
NEW YORK, Jun 22, 1999 (BUSINESS WIRE via COMTEX) --
Dell Chairman/CEO Calls Company's Competitive Advantage
"Distinct, Extensive"
The chairman and chief executive officer of Dell Computer Corporation (Nasdaq: DELL) says that the emergence of high-speed, broadband communications will provide the computer-systems industry with its biggest technology breakthrough since the Internet browser and, together with other demand drivers, portends that "the greatest days for the computer-systems industry are yet to come."
Michael Dell, speaking to reporters here this morning on the opening day of the PC Expo technology trade show, said his company is strongly positioned to benefit from the industry's continued robust growth.
"The personal computer is more vital than ever in the workplace and in the home, and I believe that trend will continue unabated," said Mr. Dell. "People have been predicting the demise of the PC for years, and they've been wrong foryears."
The significance of the PC, he said, will increase even as the number and variety of "computing appliances" -- including products for wireless communications, paging, schedule management and basic Internet access -- continue to proliferate.
He described a networked world, with the PC at its hub, "that will drive huge productivity gains for companies and for individuals." Mr. Dell said the efficiency of the Internet will increasingly drive demand for computer systems of all types.
"The Internet is changing how businesses work, how consumers buy, how children learn and how families are entertained," he said, "and it will serve as a turbocharger for already healthy sales of PCs, network servers and other computing systems. I believe a revolution is occurring, or should be, in every business, with the Internet as the core."
Broadband technology, which has just begun to provide Internet users with a dramatically faster, more robust online experience, "is the most significant breakthrough for customers and for our industry over the past five to 10years."
"The increase in broadband capacity will make it possible for users to access the Internet 150 to 500 times faster than most current connections," said Mr. Dell. "As broadband service becomes more pervasive, the only remaining logjam between users and an incredibly rich online experience will be on the desktop. I'm convinced that huge numbers of home and corporate customers will upgrade their PCs over time to fully exploit the technology."
Mr. Dell predicted the worldwide computer-systems industry would expand by at least 14 percent annually for the foreseeable future.
"That's exceptional growth for a $170-billion industry," he said. "But it won't be enough to sustain inefficient, ineffective PC makers."
Mr. Dell said much of the computer-systems industry's growth will occur outside of the United States, which currently spends about 3.5 percent of its gross domestic product on information-technology products and services. Rates in other countries are sharply lower, he said, but will begin to catch up. He offered China as an example: currently the No. 10 national market in terms of computer sales, it is expected to rank No. 2, behind only the United States, within five years.
As for Dell Computer, Mr. Dell identified four growth opportunities -- geographic expansion, increasing sales of enterprise computing systems, an expanded services portfolio and a greater share of the fast-growing consumer-PC business -- which have the potential to add an additional $10 billion each in annual revenue over time.
"The competitive advantages of our direct business model have never been as distinct and extensive as they are today," he said. "We expect to continue to grow at a multiple of the industry rate, and to do so profitably."
Ranked No. 78 among the Fortune 500 companies and No. 363 in the Fortune Global 500, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $19.9 billion for the past four quarters. Dell designs, manufactures and customizes products and services to customer requirements and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained through its toll-free number 800/388-8542 or by accessing the Dell World Wide Web site at www.dell.com.
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SPECIAL NOTE: Statements in this press release that relate to future results and events are based on the company's current expectations and beliefs. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including the level of demand for personal computers; the intensity of competition; currency fluctuations; the cost of certain key components; and the company's ability to effectively manage product transitions and component availability, to minimize excess and obsolete inventory and to continue to expand and improve its infrastructure (including personnel and systems). Additional discussion of these and other factors affecting the company's business and prospects is contained in the company's periodic filings with the Securities and Exchange Commission. |
