Dell blames profit drop on 'conservative' IT spending

Dell has blamed a drop in profits in the second quarter on a slow down in IT spending in the US, western Europe and Asia.

The company's US results were published today showing a 17% drop in profits from £373m to £308m year on year.

The company said it "sees continued conservatism in IT spending in the US, which has extended into western Europe and several countries in Asia. Demand is also impacted by currency fluctuations".

The drop in profit was despite an 11% increase in sales. The company said it would "continue to incur costs" as it invests in infrastructure and acquisitions, and reduces headcount. It has already reduced staff numbers by 8,500 this year.