In an widely-circulated blog post titled "Hardware is Dead," investment banker Jay Goldberg shocked the tech world by describing what he discovered in a tiny stall inside a Chinese electronics market. In a room full of vendors hawking computers and parts, Goldberg found an Android tablet computer – essentially a non-Apple iPad – for only $45.
Speaking with KUT News, Goldberg says he was surprised by the device's high quality and low price. "I would consider it a device that anyone in the U.S. would be comfortable using," he says. "It was a seven-inch device. It ran the latest version of Android. It was WiFi only, it had a nice screen, and a very snappy processor, so it responded to your commands, quickly."
That’s what Dell is up against, trying to make money, in a ruthlessly competitive global market, by manufacturing desktop computers, laptops, tablets, and servers. Dell's stock price shows its struggle, dropping from more than $40 per share in 2005 to around $10.
At Dell headquarters, spokesman Jess Blackburn says the nature of Dell’s business has changed, and the company is undergoing a transformation. "Our strategy, which we have been particularly focused on, is taking Dell from more of a hardware company to a full service, comprehensive solutions provider."