Future Prospects
A number of industry analysts felt that Dell was not well positioned either for a future of
low-priced, commodity-like personal computers or one of highly featured innovative digital
products like the iPad and iPod. To continue as a major player in the industry, they argued that
Dell needed an acquisition similar to HP’s $13.2 billion purchase of EDS in order to compete
in business information services. Overall, analysts were ambivalent about the firm’s prospects
in a changing industry. Should Dell continue with its current strategy of following the consumer
market down in price and adjusting its costs accordingly or, like IBM, should it change its
focus to more profitable business services, or, like HP, should it try to do both?