Things are not looking all that rosy these days at Austin-based computer powerhouse, Dell, Inc. While competitor Hewlett-Packard, Inc. is undergoing a revival of sorts, Dell’s revenue growth has slowed considerably and profits have fallen. Not surprisingly, Dell’s share price has steadily declined to around $25, a loss of about 40% in less than a year. Long gone are the heady days of the company’s $60 share price in 2000.
Noting these problems, this NY Times article provides a good overview of Dell CEO Kevin B. Rollins‘ plan to reverse the downward trend at Dell. The seriousness of Dell’s problems is perhaps best reflected by the fact that the company is questioning virtually everything in its business model, including the possibility of breaking its longtime exclusive alliance with major chip supplier, Intel. As the story notes, it’s far from clear whether even Rollins’ plan will revive Dell’s dominance in the notoriously competitive PC manufacturing industry, so stay tuned.