Dell Sees Diminishing Global IT Demand

Even so, the company has gained market share in all product lines across the globe for the first half of 2008.

Dell expects "further softening" in global demand of its computers and other information technology products, the company said on Sept. 16. In late August, when Dell reported a 17% drop in second quarter earnings, it said the "continued conservatism" for IT products in the U.S. had spread to Western Europe and several Asian countries.

Dell financial director Brian Gladden, in a conference call with analysts on Sept. 16, explained "the places where things have slowed down the most have not snapped back in September."

But despite the lull in overall demand, the company says it gained market shares in all product lines and in all regions of the world in the first half of the year. "We still intend to gain shares, and that will depend on what the underlying market growth," said Gladden.

While sales in the U.S. have generally been good, European sales are weak, especially those in Britain and southern Europe, Gladden said. He added the company will work on returning European business to profitability over the next two quarters.

Gladden confirmed Dell's intentions, announced last month, to try to rein in manufacturing costs by selling some plants, without going into details.

Copyright Agence France-Presse, 2008

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