NEW YORK ( TheStreet) -- The PC space is slowing, as Apple (AAPL - Get Report) continues to attract consumers to its Mac computers, and smartphones and tablets grow at warp speed. Dell (DELL - Get Report) investors will be hoping that trend starts to turn around.
Wells Fargo analyst Maynard Um noted the continued weakness in the PC market, though believes the recent Windows 8 launch by Microsoft (MSFT - Get Report) could help strengthen demand. He rated Dell market perform with a price target of $10 to $11.
Dell has had a rough go of it in recent quarters, as the PC becomes less relevant in both the consumer and enterprise segments. Dell is not alone, with HP (HPQ - Get Report) being subjected to the same fate. According to IDC, Dell lost 0.75% of market share year over year as of the September quarter. China is stemming some of that decline, but not enough to stop Dell's worries.
Although Dell is trying to turn itself into a services and software company similar to IBM (IBM - Get Report), Dell is still heavily reliant on PC sales for a hefty percentage of revenue. Wells Fargo's Um noted that PCs may account for as much as 48% of third-quarter revenue. As the PC market continues to degrade, having nearly half of quarterly revenue continues to drag on Dell's share price.Dell shares have fallen 34.52% so far in 2012. HP has fared even worse, off 49%, while Apple has gained 32.56% this year.