Dell to focus on computers business.
Dell Inc. announced this week that it will exit the LCD television business in an effort to focus on its core competencies — mainly computer systems. Dell executives announced that the company will end production of its LCD televisions by the end of this June. Dell currently sells LCD televisions in the U.S., Japan and other smaller markets.
Since Dell founder Michael Dell took back his original position as chief executive officer in January, Dell has gone through a number of corporate changes and staff reorganization. Under former CEO Kevin Rollins, Dell expanded its businesses in an attempt to diversify. Unfortunately, this left the company with gaps in its core business and consequently Dell lost its number one position to rival HP.
Dell entered the television business back in 2003 in an effort to turn itself into an electronics company and not just one that focused on computers. Dell itself does not manufacture any of its LCD televisions and instead buys them from OEMs in Asia. Since their launch several years ago, Dell LCD televisions have been popular with the general public because of their features to price balance.
Dell recently announced that it would take its business to traditional big box retailers. Kiosks scattered across shopping malls nationwide have been Dell’s retail source for the last few years but according to Dell CEO Michael Dell, the direct sales model is not something that the company must adhere to. “The direct model was a revolution. It’s not a religion,” said Dell.
News source: DAILYTECH