The two main names in the tech sector have decided to take different routes despite drop in sales. Dell Inc. (NASDAQ:DELL) and HP Inc (NYSE:HPQ), HP are simply responding to the drop in the market. While Dell is forming mergers, HP is going alone.
Dell has formed a merger with EMC. This deal will see the two become the main shop when it comes to doing business with big companies. EMC is a company that specializes in data storage. HP on the other hand has created a new vendor , HP Inc. this could be because HP believes that going it alone gives a company of its stature a better working chance and of course the space to focus on what matters; innovation. The outfit that HP has established is Hewlett Packard Enterprise for selling server and networking gears.
Michael Dell, the CEO of Dell claimed that the demand for HP products was shrinking while that for Dell was growing. This was during the EMC World this year which was in Las Vegas. This was after announcing the EMC and Dell merger outfit, Dell Technologies. He also added that the competition was shrinking its own success rate while it was impossible to shrink success.
According to Dell, HP is getting smaller which results in less innovation and investment among other things while Dell was taking the opposite direction where they were fostering speed , building and innovating. Coming together with EMC equips Dell with Technology for future industrial revolution.
The aim of the Dell and EMC merger is to create a broad and diversified portfolio making the a force to reckon with in the markets. So what does HP think about this? Well they believe that the two could do just better working alone.
Both Dell and HP are simply trying to make money in a market that has been in consistent decline with PC shipments expected to have a drop of 7.3% in 2016 which is actually worth $161 billion. This is according to International Data Corp.