Dell has issued a profits warning as it prepares to post
its results for the first three months of the year.
Analysts had expected a poor performance from the world’s
leading PC manufacturer, but this is now set to be worse than
expected following big price cuts by Dell.
Price competition from the likes of Lenovo and Acer has affected
Dell’s bottom line.
The company now expects profits for the first three months of
2006 to represent 33 cents per share on sales of about $14.2bn
(£8.3bn).
Analysts had expected profits in the region of 38 cents per
share from sales of $14.5bn.
News of the profits warning slashed Dell’s share price by
about 6% in after hours’ trading.
Dell will officially post its first quarter results on 18
May.
