Dell doomed for the short term, analyst reckons

ANALYST OUTFIT, TBR has warned that tin box maker Dell will face several more difficult quarters before its life gets better.

The analysts say that while new chief executive in its founder Michael Dell wants to improve the way the outfit treats its customers, he has a long way to go.

It predicts that there will be a continued backlash from Dell's recent customer problems and uncertainties around its financial accounting. It will also be unable to face off stiff competition from HP.

TBR said that Dell's appointment will go a fair way towards gaining the confidence of the company's customers and employees.

It predicts that Dell will try to change its current situation by offering customers new products that combine its hardware with software and services in bundles. However Dell will face “a daunting task” in shifting his company's focus from a low-price PC outfit to a more profitable software and services-oriented company.

Dell will probably spend the next year expanding its third-party alliances and make several acquisitions to fill gaps in its experience, TBR says. More here.