Dell's decline is amazing


Who would have thought five years ago that Hewlett Packard Co. (Nasdaq:HPQ) would not only be beating Dell Inc. (Nasdaq:DELL) in the PC market but that it would also extend its lead?

As PC remained lackluster in the fourth quarter, HP managed to boost sales by 24% as Dell's sales fell 9%, the Associated Press reported, citing data from Gartner Inc. HP had 17% of the market to Dell's 14%.

"This level of decline is unprecedented in Dell's history," Gartner analyst Charles Smulders told Bloomberg News.

As a self-described technology idiot, I have a theory for Dell's problems: hubris. The last time my wife and I priced a PC, we went through Dell's Web site. Our friend did the same thing. We wound up getting different prices for the same machine. It was just too confusing to figure out.

When it was time to get an upgrade, we went with an H-P.

Wall Street is starting to lose its patience with Michael Dell and Kevin Rollins. Shares of Dell have plunged 16% over the past year while HP has soared 33%. Even Sun Microsystems Inc. (Nasdaq:SUNW) has outperformed Dell.

I wonder what it will take for Dell to get out of Wall Street's dog house.

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