Enterprise sales cushion Dell from Q1 consumer blow

Dell has boosted profits by 177% since last year after aburgeoning corporate refresh cycle saw itincrease sales to enterprise customers and cushioned the Texas-based PC builder from slowing consumer sales. In its Q1 fiscal 2012 year results, Dell's profits were up 177% to $945m, up from $341m this t

Dell has boosted profits by 177% since last year after a burgeoning corporate refresh cycle saw it increase sales to enterprise customers and cushioned the Texas-based PC builder from slowing consumer sales.

In its Q1 fiscal 2012 year results, Dell's profits were up 177% to $945m, up from $341m this time last year. During the quarter, corporate PC refreshes caused sales of desktop and laptops to rise 7% and enterprise services sales to large businesses increased 5% to $4.4bn.

Dell CFO Brian Gladden said the firm was continuing to build momentum with its strategy to expand the enterprise solutions and services business.

"We have built an $18bn enterprise solutions and services business with exciting growth potential and our execution in the core client business continues to be very good," he said.

Overall sales rose just 1% during the first quarter, with the company's enterprise services division accounting for 30% of the total $15bn sales.

Lower component costs, which were down 9% from the previous year, could have contributed to increased laptop profitability, said Dell. 

However, consumer sales fell 7% to $3bn. Public sector sales also experienced a 2% decline due to reduced spending on desktop and laptop devices.

In the quarter, Dell completed its acquisition of virtualised data storage company Compellent, to expand its enterprise storage offering. However, Dell's overall storage business sales dropped 13%.

The company is also investing $1bn (£613m) into new cloud-based technologies and datacentres during its current fiscal year.

A version of this story originally appeared on ComputerWeekly.com

 

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