As Dell reinvents itself as an end-to-end service provider, it needs to deal with the commodity PC part of its business. IDC recently downgraded its 2013 forecast for PC shipments from bad to worse, estimating that sales will take a near double-digit 9.7 percent dive this year.
In July, research firms Gartner and IDC released separate reports that suggested Dell's PC business accounted for $9.1 billion, a 5 percent year-over-year drop. According to Dell's most recent earnings report, more than half of Dell's revenue comes from PCs and accessories. Dell has said it will stay in the PC business because it acts as a springboard to selling other higher-margin products and services.
But, the challenge remains to quickly offset dwindling PC sales with business services.