Michael Dell Takes on this Shaky Tech Company

Michael Dell, founder and Chief Executive of Dell Inc (NASDAQ:DELL) is competing with Hewlett-Packard (NYSE:HPQ) by expanding his business into higher-profit service and software businesses, but he’s doing so without compromising his PC business—a factor he believes to be very important.

Dell Inc. (NASDAQ:DELL), which is growing into new services and building new facilities in San Francisco, is not willing to stop selling PCs, but is instead looking to sell more of them. The company says PCs lower their prices on key parts and allows the company to offer a wider and more complete range of products.

In an interview with Dow Jones Newswires, Michael Dell explained his reasons for maintaining the company’s PC sales, saying “you can’t have an end-to-end solution without it. There are also economic reasons. If you think about what goes into computers: you have disk drives, you have memory chips of one kind or another, you have microprocessors. Well, it turns out that about 5% of the disk drives in the world go into servers and storage. Whether they’re in data centers or tucked away in closets, it’s about 5%. The other 95% go into PCs.”