The major key issues for Dell profit falls 47 percent in third quarter is due to Dell’s desktop computers and laptop sales dropped significantly, it is because of tablet and Smartphone being popularly, mobile devices using mobile operating system from Apple and Google. For the PC market, the main competitive products-Smartphone and tablet are raising the demand fastly so it led to a drop in demand of Desktop and laptop. To facing the market needs are changing, but Dell did not product a new product to catch up the customers.
For the challenge of facing tablet competitors, Dell have developed and launched new products-XPS 10 tablet and XPS ultra book. There is using Windows 8 software, combine the touch screen devices and Internet-based. XPS ultra book is a ultra book and Tablet combinations, When you reverse the screen, it can change to a tablet. Dell should be conduct a series for the promotion of new products to improve product awareness and use price reduction strategies to increase the total revenue.
Dell’s market position is provides low price and high quality computer products, and well order service. I propose that put the desktop computer resource focus on large enterprises and SMEs .In addition, Dell's Alienwar should be ameliorate. I think Alienwar is the trump product. We can put more resources for the development of this production line, to make a lower prices to attract individual users. For the tablet market, the main competitors are the big brands such as Apple, Samsung, Sony and Google, Dell can seized the opportunity to launch a new product line for tablet computer into the tablet computer