In a candid admission of strategic error, Dell Technologies has outlined plans for a significant course correction in its underperforming personal computer business. The company, which lost market share to competitors throughout 2025, aims to stage a comeback by targeting a wider range of price points and reviving a beloved consumer brand.
A Strategic Misstep and a Public Apology
Chief Operating Officer and Vice Chairman Jeff Clarke, who took temporary oversight of the PC unit about four months ago, stated that Dell veered off course by concentrating excessively on the high-end, premium segment for commercial customers. This focus, he conceded, caused the company to miss out on a substantial portion of the broader market.
"We've got a bit off course," Clarke acknowledged. The company's lack of product breadth was a critical weakness, according to analysts. Asiya Merchant, a technology hardware and supply chain analyst at Citi Research, noted that while Dell has traditionally succeeded with premium corporate clients, its narrow portfolio and absence from lower consumer price bands hurt its performance.
Clarke also offered a public mea culpa regarding a specific consumer-facing decision. He apologised for discontinuing the popular XPS line of computers last year, an action that alienated many loyal customers. "I owe you an apology. We didn't listen to you. You were right on branding," Clarke told tech reporters and enthusiasts during a CES preview event in December.
The Hard Numbers Behind the Struggle
The need for a turnaround is underscored by stark financial and market share data from 2025. Dell's overall PC business revenue shrank to $48.4 billion in 2025 from $48.9 billion in 2024, marking an approximate 1% decline. During the same period, its competitors saw their businesses grow.
Market share figures from International Data Corp (IDC) reveal a slide in both key segments. In the consumer space, Dell's share fell from 5% in Q4 2024 to 4.6% in Q4 2025. More critically, in the enterprise segment where it is historically stronger, its share dropped from 22.5% to 21.2% over the same timeframe, leaving it behind rivals Lenovo and HP.
The 2026 Roadmap: Broader Portfolio and Leadership Changes
At the CES 2026 event in Las Vegas this week, Dell announced the first steps of its recovery plan. The company intends to compete in lower market tiers with new product releases scheduled for 2026. A cornerstone of this consumer push is the revival of the discontinued XPS brand, a direct response to customer feedback.
"We can course correct, we can be humble, and we can correct decisions that we've made in the past," Clarke affirmed. Alongside product strategy shifts, Dell is also making leadership changes. Rob Bruckner, who joined the company in early December, will now lead the commercial PC business. Clarke will continue to oversee the consumer side until a permanent leader is appointed.
This broadening strategy comes during a challenging period for the entire PC industry. Manufacturers are grappling with skyrocketing prices for memory chips. Furthermore, IDC research forecasts that the global PC market will contract by 2.4% in 2026, following a growth of 6.6% in 2025, setting a tough macroeconomic backdrop for Dell's attempted resurgence.
