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Dell Must Reinvent Itself or Perish

Tech giant should buy RIM, writes Richard Saintvilus

By Dustin Lushing,  Newser Staff

Posted Aug 31, 2012 3:36 PM CDT

(Newser) – Dell is in a tailspin, with earnings down 18% from last year. What to do? Reinvent itself—by buying Research in Motion, the creator of the Blackberry, writes Richard Saintvilus at TheStreet. By gearing up for battle against Apple, Microsoft, Google, and Amazon in the mobile device market, the PC maker can show Wall Street it's still a player. It should follow IBM's model "by letting go of what it knew and venturing into an area where it can lead," writes Saintvilus. "Its life now depends on it."

Dell's current strategy involves pinning its hopes to the success of Microsoft's new Windows 8 operating system, assuming that customers will ignore Apple and flock back to PCs. But this bet is too perilous. Instead, Dell should acquire Research in Motion and scoop up its BlackBerry software, its growing music service, and its Mobile Fusion platform, a product that links enterprise mobile devices. "RIM not only would make the story more interesting, but it could potentially signal the next chapter in Dell's lackluster growth." Read the full column here.

Research in Motion's campus, located in Canada.
Research in Motion's campus, located in Canada.   (AP Photo/The Canadian Press, Chris Young)
Dell can turn around its withering business by acquiring RIM, maker of the BlackBerry.
Dell can turn around its withering business by acquiring RIM, maker of the BlackBerry.   (AP Photo/Paul Sakuma)
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COMMENTS
Showing 3 of 27 comments
nano404
Sep 3, 2012 5:13 PM CDT
I'm using a Dell workstation right now, great laptop. Dell needs to focus on their business consumer side. I think profit margins are too low on the consumer side and they get to build a better product because the business customers will pay for it.
Mad
Sep 1, 2012 10:47 AM CDT
Dell lost their 'cool' when they fired the "Dude, you're getting a Dell", dude. They could've capitalized on this minor pot possession charge and sold millions to an appreciative market share.
OuttaHere
Sep 1, 2012 9:34 AM CDT
To succeed in a commodity business you have to be able to differentiate yourself. Dell hasn't. It will hobble along but will never be the Wall Street darling it was once touted to be.
 

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