Dell Profit Plunges on Disappointing Sales

May 23, 2012
The company, which has slipped to third place in the global PC market, said profits in the first fiscal quarter fell to $635 million, a 33% drop.

Computer maker Dell (IW 1000/55) on March 22 reported a 33% drop in profits in a disappointing quarterly report for former market leader.

The company, which has slipped to third place in the global PC market, said its profit in the first fiscal quarter fell to $635 million.

Revenue in the quarter was $14.4 billion, a 4% decrease from the same period the previous year.

Dell said however the firm was moving away from its traditional PC base to services. "We continued to shift the mix of our business during a challenging environment," said Brian Gladden, Dell's chief financial officer.

"Our enterprise solutions and services businesses now account for 50% of our gross margin, and we'll continue to make the necessary investments to maintain our progress."

Texas-based Dell, once the biggest PC maker, has fallen to third place behind market leader Hewlett-Packard and Lenovo, and is just barely ahead of fourth place Acer Group.

Dell last month said it was buying Wyse Technology to expand its business offerings in the Internet "cloud" in the face of softening demand for traditional computing hardware.

Last year, Dell said it would halt sales of its Android tablet computer in the U.S. market, failing to gain traction against rivals such as Amazon's Kindle Fire and Apple's iPad.

Copyright Agence France-Presse, 2012

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!