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Follow UsMartha Slud
Boca Raton, Fla.: Michael Dell, the head of No. 1 personal computer maker
Dell Computer Corp., said on Thursday the company is considering acquisitions
but would continue to rely primarily on growth from within.
"It's a pretty simple issue," said Dell, in comments to Reuters at
the Business Council forum of chief executive officers in Florida. "If you
look at the new areas of Dell's business, whether it's in data networking, or
storage or services, we're looking at alliances and partnerships and certainly
acquisitions would be a potential."
But "we certainly don't have any acquisitions to announce," said
Dell, CEO of the Round Rock, Texas-based company. Organic growth "will
continue to be the majority of our growth," he said.
Dell's comments come at a time of consolidation in the industry. Compaq
Computer Corp. and computer and printer maker Hewlett-Packard Co. plan to merge.
Shareholders are expected to vote on the merger plan in March, but analysts say
it is still a toss-up whether the contentious deal will go through.
Dell Computer has led a price war that has helped it win market share and
capture the top spot from rival Compaq, now the No. 2 personal computer maker.
But PC demand has slacked off as the economic downturn has dampened buying by
consumers and corporations, and the computer company is looking to find new
areas for growth.
Speaking at a news conference on Wednesday announcing the results of a
Business Council survey of CEOs, Michael Dell reiterated comments of other
corporate leaders who said they were braced for more short-term weakness but
most predict a recovery from recession later this year.
Dell said he was encouraged about the prospects for the PC industry because
he expects more people will need to replace aging computers.
"A replacement cycle will open up," he said. Michael Dell and about
100 other chief executives from major corporations including Citigroup, CSX
Corp. and Johnson & Johnson are attending the Business Council meetings in
Boca Raton, Florida.