SF Gate has an interview with Dell’s new CEO Kevin Rollins (Michael Dell is now chairman):
Our model is a very intensely execution- oriented model. We have a strategy, which is a Dell Direct business model, but then the key to its success is how well we implement it day in and day out. Anytime we fail to execute is the biggest risk by far.
[HP] had a great, profitable printer business before [their merger with Compaq]. They still have a great, profitable printer business. … Their profits are 70 to 80 percent from the printer business. So that’s the area where the profit pool still lives. It’s where it lived before. It’s where it still is now. So I just ask, what’s changed?
[PC growth is being propelled by] New technology. The Internet. Broadband. Wireless. More software. More media capability within the home. Obsolescence and just wearing out. You have to upgrade your PCs. You have to do that at some point in time because they just fall apart. They don’t last forever.