Dell Mobile plans deepen analyst concerns about profitability

In Tuesday, Dell said it planned to squeeze into the crowded smartphone market and invest in areas such as services and virtual data centers, deepening fears of a continued decline in Dell's profitability. Dell Consumer goods Division President Ronald　　Quis Ronald Garriques said the company would "work with three to four top operators" to "meet their needs".　　In his annual financial report, Quis advises institutional shareholders that Dell is trying to develop smartphone products sold in Asia, Europe and the US. UK brokerage Collins Stewart analyst Ashok Kumar said he believes Dell will soon release a Google Android phone in China. "Dell needs breakthrough products to squeeze into the crowded mobile phone market," the early conclusion is that Dell phones are nothing new and cost less.　　"Dell executives also said the company would try to increase market share in the computer market in Europe's small and medium-sized enterprises, hoping to increase sales of other consumer electronics products." In a Monday press conference, Dell said its profit margins would drop this quarter, and Dell executives said in Tuesday that business spending continued to weaken.　　The price of components such as LCD screens, and Low-margin netbook products, has had an impact on Dell's profitability. Dell CEO Michael Dell says the company's top priority is to generate profitable revenue, and Dell will continue to reduce market share in lower-margin markets.　　He says the company is looking for more services and will profit from the trend of virtual data centers. But analysts say they are concerned that Dell's strategy threatens its core hardware business.　　Because cloud services and virtualization will allow enterprises to focus on outsourcing infrastructure management facilities. Author: Black Cat