Hewlett-Packard Condemns Dell for Going Private

HP: Dell Has Tough Road Ahead, Bad for Customers

by Anton Shilov
02/05/2013 | 08:38 PM

After Dell announced earlier today that it will be becoming a private company, which will likely result into intensifications of its internal transformations, Hewlett-Packard, one of Dell’s arch-rivals released a statement claiming that the change of ownership will negatively impact Dell’s customers. HP claims that the $15 billion debt to banks will reduce Dell’s ability to develop new products and technologies.

 

“Dell has a very tough road ahead. The company faces an extended period of uncertainty and transition that will not be good for its customers. And with a significant debt load, Dell's ability to invest in new products and services will be extremely limited. Leveraged buyouts tend to leave existing customers and innovation at the curb. We believe Dell's customers will now be eager to explore alternatives, and HP plans to take full advantage of that opportunity,” the official statement of HP reads.

While changes are something that clearly waits Dell in the future, at present it is hard to determine how this will affect customers of the company. Quite obviously, some will be unhappy as Dell will likely drop outdated or declining product lines or categories in a bid to focus on rapidly growing and promising segments.

Keeping in mind that Dell has not yet announced any particular plans for changes after it becomes private in several months, it is hard and too early to predict the outcome of Dell’s move as well as any effect on the company’s clients.