It’s no secret that last year was a challenging year for the PC market, with major brands like Dell and Acer taking double-digit losses. While some analysts predicted a rebound for this year, Dell anticipates that the demand for PCs and servers will remain weak, making 2023 another challenging year for the market.
During a recent earnings call, Chuck Whitten, Dell’s co-chief operating officer, explained that despite reporting revenue of $102.3 billion, with the Infrastructure Solutions Group (ISG) seeing record revenue of $38.4 billion during fiscal 2023, the company’s revenue in the final quarter dropped by 11%, suggesting tough times ahead.
Whitten said, “It was a continuation of trends we’ve seen in recent quarters. Commercial revenue fared better than consumer, down 17%, as customers delayed PC purchases in the face of macroeconomic and hiring uncertainty. Consumer revenue was down 40%.”
Exploring other opportunities
While the PC market is currently in a tough situation, Dell is shifting its priority to the storage market, which is experiencing promising growth. Currently, the company’s revenue is larger than the next three vendors combined and it remains optimistic about its momentum in storage and expects to gain more than a point of share in mainstream server and storage revenue.
Despite the challenging year, Dell remains the third most popular computer company in the market, accounting for 17.4% of the market share. The company also retained the spot for the largest server vendor and gained nine points of mainstream server revenue share over the last decade.
Dell remains confident in the long-term prospects of its markets and business model as its customers continue to see the company as a trusted partner that can help them “navigate the complexities of hybrid work, multi-cloud, and the edge.” The growing demand for cloud-based storage also presents an opportunity for the company to explore new avenues for growth.