The shift has weakened long-time stalwarts such as Dell, fellow PC maker Hewlett-Packard Co.
After stumbling in the mid-1990s, the company has reinvented itself--thanks to the return of Steve Jobs--passing PC giant Dell (nasdaq: DELL - news - people ) in market capitalization last week.
Not according to John Legere, Asia Pacific president of U.S.-based Dell Computer, which has introduced its PC-selling websites in 16 countries including China.
It certainly explains Apple's ability to crank out consumer-friendly gizmos where rivals, ranging from consumer electronics giant Sony (nyse: SNE - news - people ) to PC powerhouse Dell (nasdaq: DELL - news - people ), have stumbled.
Lenovo also appointed William Amelio, a veteran of Dell, a rival PC-maker, as its new boss.
Dell , the third-largest PC maker, is in talks about a potential LBO with private equity firm Silver Lake Partners.
With its manufacturing efficiency and strong brand name, he says, Dell can defeat the cheap-PC guys just as it beat Packard Bell earlier in the decade.
The largest independent shareholder in PC-maker Dell has vowed to oppose a plan by its founder, Michael Dell, to buy back the company.
After stumbling in the mid-1990s, the company has reinvented itself--thanks to the return of Steve Jobs--passing PC giant Dell in market capitalization last week.
The downgrade follow dismal earnings reports this week from both Dell and Hewlett-Packard, as PC sales sag amid a weak macro economy and competition from tablets and smartphones.
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Led by billionaire Carl Icahn and Southeastern Asset Management, they want investors to chose their proposal, basically a bet that Icahn and Southeastern will find a CEO who can make PC-oriented Dell competitive in an era of tablets and cloud computing.
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In a letter to the special committee released by Dell, Icahn said he has built a significant stake in the PC-maker, and that the buyout by Dell and Silver Lake Partners undervalues the business.
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It's a risky move for Dell , which pioneered the direct-sales PC business and has made the strategy its hallmark.
Orders go from the Internet to the factory floor, where Dell assembles and boxes a custom-configured PC in less than four hours.
Networking revenue grew 40% year over year, as Dell transitioned itself from being a PC-centric company to a software and services company, similar to IBM ( IBM).
That mix makes Dell a particularly valuable barometer, since Dell competes with Apple in high-end PC market, Asus and Acer in the mainstream PC market, HTC and Samsung in tablets and smartphones, IBM in the data center, and HP just about everywhere.
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The acquisition was not so much for Compaq's PC business-- Dell Computer 's (nasdaq: DELL - news - people ) relentless cost-cutting model has taken out most of its competitors' profits there--but in the hope of building a consulting business, particularly in managed services, that could complement HP's highly profitable printing business.
Don't get us wrong, the 5103 still feels like a netbook, but toggling between windows and opening programs felt snappier than our Atom N450-packing Toshiba Mini NB305, though not as fast as the dual-core Atom D525-powered Eee PC 1215N or the AMD Athlon II Neo K325-powered Dell Inspiron M101z.
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Apple is primarily a consumer-oriented company with little presence in the enterprise PC sector, where computer makers like Dell, H-P and Lenovo dominate the business notebook market.
Orders drop from the Internet right to the factory floor, where Dell can assemble and box a custom-configured PC in less than four hours.
He thinks more leadership change is in the offing, as HP continues to chase Dell (nasdaq: DELL - news - people ) for PC leadership.
The average price that Microsoft charges PC manufacturers like Dell and Hewlett-Packard for its Windows operating system has been declining since 2008, led by an increasing mix of netbooks among PC sales.
Dell, the world's third-largest PC maker, has said Friday's deadline for competing offers could be extended if its board believes other suitors would benefit from more time to examine Dell's books and hash out other details.
Dell confirmed Thursday that the struggling PC giant--which rose to the top in the hardscrabble computer retail business by hawking its wares directly to its customers--will start selling desktop computers through 3, 000 Wal-Mart outlets starting June 10.
And this from a man who runs a company that licenses a digital movie distribution service to at least 20 companies, including retailers like Best Buy and Sears, PC makers like Dell and Hewlett-Packard, TV makers like Vizio and a number of film studios.
The weaker near-term PC demand is likely to impact the financial results at Dell (DELL) and Hewlett-Packard (HPQ).
In the late 1990s, Dell tore through the PC industry with its hyper-efficient, built-to-order manufacturing model.
And if the deal closes, Michael Dell would remain in charge of the custom PC-maker he founded in his Austin dorm room in 1984.
Apple primarily competes with PC makers like Dell, Hewlett-Packard and Acer, all of which have seen greater notebook price erosion than Apple historically.
Dell is confident of remaining among the lowest-price PC producers.
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