Dell profits collapse as PC spend dries up

Dell’s net profits have almost halved after another dismal quarter in the PC sector, slumping 47% to $475m (£300m) on sales of $13.7bn, down 11% on the year-ago quarter

Dell’s net profits have almost halved after another dismal quarter in the PC sector, slumping 47% to $475m (£300m) on sales of $13.7bn, down 11% on the year-ago quarter.

DeclineAlthough it has been striving to transform itself into an end-to-end IT solutions firm, healthy growth in areas such as Enterprise Solutions and Services and Servers and Networking – which Dell said vindicated its strategic approach – were not good enough to distract from the serious problems at Dell’s core.

The Texan giant has come under pressure from both consumer and corporate buyers, who have been deferring upgrades and plumping for smartphone and tablet devices instead of PCs. It said it did not see things improving in the fourth quarter, though CFO Brian Gladden said he was “encouraged” by early interest in its new Windows 8 touch portfolio.

“We are consistently executing our end-to-end solutions strategy for the benefit of our customers,” said Michael Dell, Chairman and CEO.

“In the quarter, we completed the acquisition of Quest Software which – along with other recent acquisitions like SonicWALL and Wyse – adds leading management, security, virtualisation and cloud capabilities to our expanding portfolio of powerful solutions.”

Gladden added that in spite of Dell’s woes it continued to generate strong cash flow, adding $1.3bn from operations to its pile during the third quarter, money it plans to invest in “new capabilities”.

MicroScope+

Content

Find more MicroScope+ content and other member only offers, here.

Read more on Finance and Credit

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

ComputerWeekly.com

  • CIO Trends #6: Nordics

    In this e-guide, read how the High North and Baltic Sea collaboration is about to undergo a serious and redefining makeover to ...

  • CIO Trends #6: Middle East

    In this e-guide we look at the role of information technology as the Arabian Gulf commits billions of dollars to building more ...

  • CIO Trends #6: Benelux

    In this e-guide, read about the Netherlands' coalition government's four year plan which includes the term 'cyber' no fewer than ...

SearchITChannel

Close