Price cuts produce Dell profits warning


Price cuts produce Dell profits warning

Antony Savvas

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.

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