Dell Is Working On Wearable Computing Devices Too

Posted Jul 4, 2013

Dell is prototyping wearable computing devices, according to the company’s global vice president of personal computing Sam Burd, in an interview with Guardian UK.  “We’re exploring ideas in that space,” said Burd.  Almost every major tech company is experimenting with the wearable computer market as Apple is developing a smart-watch prototype, Google released smart-glasses product called Glass, Sony is selling the SmartWatch, and Samsung is prototyping a smart-watch.  Pebble Technology has already sold around 100,000 of their smart-watch product and is selling their product in Best Buy stores later this month.

“There are challenges in cost, and how to make it a really good experience,” added Burd. “But the piece that’s interesting is that computers are getting smaller. Having a watch on your wrist ? that’s pretty interesting, pretty appealing.”

It may take a while for Dell to release this type of product because the company is currently dealing with a bidding war to go private.  Dell CEO and founder Michael Dell made an offer and billionaire investor Carl Icahn has also made an offer.

“Michael Dell believes we are on the right page for transformation,” added Burd. “The view is that we can get ourselves out of the quarterly reporting process where you can’t make hard decisions to speed up that transformation.”

One of Dell’s biggest issues is that the PC market is shrinking.  This is why the company needs to diversify their revenue stream.  Dell’s PC revenues dropped around 9% to $8.9 billion for the three months ended in May.  Income dropped 65% to $224 million.  Dell is now the third largest PC company after Lenovo and HP.

Dell has sold XPS-10 and Latitude 10 tablets in the “hundreds of thousands” that uses Windows RT and Windows 8.