Building PCs offers several economies of scale: Dell chief says

 Dell chief says While Hewlett-Packard (HP) is considering spinning off its PC division, rival manufacturer Dell is stressing on economies of scale from manufacturing and selling PCs.

In his keynote at the Oracle OpenWorld in San Francisco, Dell's chief executive Michael Dell said that there were numerous reasons to remain committed to personal computing.

He said manufacturing PCs had helped the company in keeping component costs for servers low. Explaining his point, he said 95 per cent of all disks & processors sold used into PCs, while the remaining five per cent went into servers and storage. Thus, by manufacturing PCs Dell generated such as big demand for these components that their prices are kept low.

Speaking on the topic, he said, "It seems these days not everyone is so totally committed... [HP] used to say the computer is personal again, I guess you might take that personally if you brought a PC from them."

Mr. Dell also said that the list of benefits from building PCs also includes that the company can deliver an entire solution, optimizing everything end-to-end.

In addition, Mr. Dell announced that the 12th generation of PowerEdge servers, which will have 2TB of memory and integrated flash, should be available sometime in the first quarter of next year.