#Dell CEO Michael Dell delivers a keynote address during the 2013 #Oracle Open World conference in San Francisco on Sept. 25, 2013.Despite a shrinking PC market, the percentage of Dell's revenue from client solutions in financial year 2016 stayed the same as it was in 2013 at 66 percent.
The personal-computing market, long known to be struggling, is in worse shape than most analysts believed — and that's bad news for the handful of tech giants that continue to derive the bulk of their revenue from this still vast, but quickly declining, industry. Behemoths like #Microsoft, #Intel, #Hewlett-Packard, Dell and #Lenovo have generally failed to build much presence in tech’s new growth markets even as their core PC business shrinks.
If the PC industry's "big five" can't successfully find new frontiers in emerging areas like mobile, artificial intelligence, virtual reality, the cloud and analytics, the consequences for both Wall Street and Main Street could be severe. Despite their shrinking market, these vendors collectively still employ more than 640,000 workers and represent a combined market capitalization (excluding privately held Dell) of $655 billion. Their decline's effects could quickly ripple through the economy.
The plight of these "Wintel" vendors was made clear yet again Thursday when Intel reported that sales of PC chips fell 1 percent in the fourth quarter. Intel shares plunged more than 8 percent in midmorning trading Friday. On a conference call with investors, CEO Brian Krzanich noted "a significant decline in PC demand." Intel's client group, which includes personal computers, accounted for 59 percent of the company's revenue in the fourth quarter.
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