If rumors are true and Dell is set to be bought out and taken private, that would mean that the only remaining public company in the U.S. to make PCs would be HP – who had recently threatened to exit the PC business and then subsequently fired their CEO and changed their minds under Meg Whittany. A few years ago U.S. company IBM sold their ThinkPad and ThinkCentre line of business PCs to Chinese computer company Lenovo.
Though it’s not exactly clear why Dell is considering being taken private, CEO Michael Dell has made it clear he is committed to the company but no longer wants it to be considered a “PC company”, but rather is trying to shift the focus to being a business IT services vendor along the lines of IBM. The profit margins are much wider when it comes to IT services compared to PC hardware production, thus the attraction. Michael Dell has been working to turnaround the company for a number of years, and it could be that he views taking the company private as an easier way to execute on his vision. We’ll see how this all plays out, but should the company be taken private it will be interesting to see how, and if, the PC division is affected given the fact the CEO has made it clear that is no longer a focus. It could be that once privatized Dell could more easily work to wind down their PC business and focus only on growth areas for the company and not worry about losing the revenue the PC business generates once out of the eyes of the public and analysts.