The slow death of consumer
Consumers aren't their priority -- organizations are. They are completely re-aiming their efforts toward supporting organizations.
Per their earnings report, they have gone from $3.3B in consumer revenue this time last year to $2.6B, while only making 0.5% net income overall off that business. They attribute that to two choices they have made (taken verbatim from their earnings report today)
"Non-participation in low value systems, which impacted revenue in growth markets." Let me translate: we opt not to sell systems at a loss, which is screwing up our ability to be relevant to consumers outside the U.S.
"Shift of spend to alternative mobile devices." We decided, after creating lackluster products like the Streak, that we don't want to compete in this space until we can do something special. But anything we do that's special will be aimed at organizational users, not consumers, because organizations accounted for, this past quarter, all but $14M of our net income.
Dell drove all the margin out of consumer notebooks in a race to the bottom -- and then backed away from the natural consequences. So if you're a consumer -- bad news for ye. If you're an organization, expect more choice from Dell -- because they can make money from your purchases.