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Dell: "Uncertain adoption" of Windows 8 is part of its reason to go private


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Dell said that the "uncertain adoption of the Windows 8 operating system" was part of the reason why the PC company is submitting a plan to its shareholders to take Dell back to a private business.

Dell announced its plans to back turn itself back into a private company via a leveraged buyout with help from a $2 billion loan from Microsoft, in early February. The plan, which would pay owners of the company's stock $13.65 a share, is already being challenged by two alternative buyout offers from outside parties.

AWDo4m7.jpg

Dell's upcoming XPS 18 all-in-one Windows 8 touchscreen PC; a mix of tablet and desktop

While Microsoft may be chipping in to help raise the $24.4 billion needed for Dell's official leveraged buyout, a new filing made late on Friday with the U.S. Securities and Exchange Commission states that the launch of Microsoft's Windows 8 OS was part of the reason why Dell felt now is the time for its change from a public to a private business.

Dell's document states that, in the company's opinion, there are a number of challenges that are facing the PC industry. They include " ... the uncertain adoption of the Windows 8 operating system and unexpected slowdowns in enterprise Windows 7 upgrades." Dell also cited a general sales decline in the worldwide desktop and laptop PC market, along with an increase in tablets and smartphone sales from consumers, which Dell believes people could buy as substitutes for new PCs.

The SEC filing did not directly address the two competing bids for Dell from the Blackstone Group and billionaire Carl Icahn. However, it did say that, in its opinion, there were "a number of risks and challenges" if Dell were to remain a public company. In related news, Reuters reports, via unnamed sources, that Dell founder and CEO Michael Dell met privately with the senior managing directors of the Blackstone Group earlier this week. The report did not state what was discussed at the meeting nor its outcome.

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  • Administrator

Wow. Windows 8 effecting future of hardware manufacturers, no one thought about that. :mellow:

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Wow. Windows 8 effecting future of hardware manufacturers, no one thought about that. :mellow:

I've been posting that fact here in my posts since more than a month ago DKT27 :(

I keep telling all the people here that there is something wrong going on in micros0ft's marketing strategy. <_<

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  • Administrator

Wow. Windows 8 effecting future of hardware manufacturers, no one thought about that. :mellow:

I've been posting that fact here in my posts since more than a month ago DKT27 :(

I keep telling all the people here that there is something wrong going on in micros0ft's marketing strategy. <_<

Same here. But never actually thought about the important fact that Windows 8 will negatively effect PC makers too.

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MidnightDistortions

Wow. Windows 8 effecting future of hardware manufacturers, no one thought about that. :mellow:

I've been posting that fact here in my posts since more than a month ago DKT27 :(

I keep telling all the people here that there is something wrong going on in micros0ft's marketing strategy. <_<

Same here. But never actually thought about the important fact that Windows 8 will negatively effect PC makers too.

I don't think Win 8 is a huge impact on negative PC sales, (although it is a pretty big factor). I think the biggest factor right now is iPad/Tablet buyers. They already have a PC that works so they spend their extra cash on a Tablet instead. The economy is another one. I haven't bought a single brand named PC since 2003 (minus a used replacement desktop for my broken laptop), but i did build my own pc in 2012 running Win 7 on it (i also wonder if motherboards/processors are drastically down in sales as well). I later on got a free laptop that i fixed that also runs Win 7 & i'm pretty much set for a good while. If anything goes wrong with any of my PC's i could fix them myself. I personally don't like brand name prebuilt PC's mostly because of the lack of upgrade ability on some, especially with laptops. That and i'm sure some Xp users are still using their PC's from 97-2004. Once their PC dies or is unfixable (or unable to run the current software) they'll get a new PC.

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I don't think Win 8 is a huge impact on negative PC sales, (although it is a pretty big factor). I think the biggest factor right now is iPad/Tablet buyers. They already have a PC that works so they spend their extra cash on a Tablet instead. The economy is another one. I haven't bought a single brand named PC since 2003 (minus a used replacement desktop for my broken laptop), but i did build my own pc in 2012 running Win 7 on it (i also wonder if motherboards/processors are drastically down in sales as well). I later on got a free laptop that i fixed that also runs Win 7 & i'm pretty much set for a good while. If anything goes wrong with any of my PC's i could fix them myself. I personally don't like brand name prebuilt PC's mostly because of the lack of upgrade ability on some, especially with laptops. That and i'm sure some Xp users are still using their PC's from 97-2004. Once their PC dies or is unfixable (or unable to run the current software) they'll get a new PC.

What most editors fail to note. Why would people buy new PCs if they don't find the OS interesting anymore? For me, OS is as responsible as tablets and mobiles are.

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smallhagrid

For me the OS is like the basement of the house, holding it up from falling down.

Most of the time I don't think about it or go there...

Once in a while it is needed to look there and be sure it has no big problems, no water getting in, and clean away the cobwebs - then leave it alone again.

As for PC makers getting 'loans' from m$, this reminds me of the 180 million 'gift' to apple way back when; and, if other PC makers are very quietly becoming m$ subsidiaries by virtue of such 'loans'.

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As for PC makers getting 'loans' from m$, this reminds me of the 180 million 'gift' to apple way back when; and, if other PC makers are very quietly becoming m$ subsidiaries by virtue of such 'loans'.

Sounds like Nokia to me. :tehe:

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Coming back to the topic, when I next write here - I shall be describing with facts how Dell capitulated to Microsoft (WRT Windows 8.) :yes:

This is not a prediction or a prognosis - have found it to be the rule rather than an exception.

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