Dell India's Next Gamble

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The next billion PC users will come from emerging markets,” said Michael Dell back in October 2013, when he privatised his eponymous computer company. Eventually, Dell was bought back by its founder in a $25-billion deal. Once a global PC sales leader, the company had read the writing on the wall after ceding ground to Lenovo in a shrinking international market.

Sanchit Vir Gogia of Greyhound Research, which conducted a PC consumption study in the country in 2015, believes that there are pockets of consumption and stagnation in India and that Dell has tried to follow the growth pockets. “In many tier 2 and 3 cities, where the internet and start-up boom is currently underway, with more people receiving higher education, demand is not going to decline in the future. Down south, in many such towns, parents are still buying desktops for children, while in the north, cellphones and tablets hold sway,” says Gogia.

In many small cities, where the start-up boom is underway, demand is not going to decline —Sanchit Vir Gogia, chief analyst, Greyhound Research

“What is making a comeback is the all-in-one or two-in-one,” says Gogia. Unlike conventional desktop computers, the all-in-one has a CPU integrated into the monitor and the two-in-one is a tablet-cum-laptop.

Source: Business Outlook

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