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Hungry HP Claws Dell

Hungry HP Claws Dell
No. 1 PC maker HP has sent a stark message to rival Dell, saying it “plans to take full advantage” of the changes its rival is undergoing, and steal to its customers

HP also said Dell’s announcement this week to flee Wall Street and go private will “not be good for its customers.” The Dell private buyout is worth $24.4 bn.

Michael Dell now has regained majority control of the company, in partnership with tech investment firm Silver Lake and Microsoft also invested $2bn.

In 2000, Dell was the largest PC maker before being overtaken by HP and Chinese brand Lenovo, who currently stand at No. 1 and 2 respectively in the global PC ranking, according to analysts IDC and Gartner.

HP, who had a series of crisises in 2011 after it toyed with the idea of getting rid of its PC business and going fully into software, may be jealous that Dell can now make necessary business reforms away from the glare of Wall Street and dividend hungry shareholders.

“Dell has a very tough road ahead,” HP said in a statement yesterday and warned: “with a significant debt load, Dell’s ability to invest in new products and services will be extremely limited,”

“The company faces an extended period of uncertainty and transition that will not be good for its customers.”

“Leveraged buyouts tend to leave existing customers and innovation at the curb.

“We believe Dell’s customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity.”