Industryweek 2523 Dell Bw Logo

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

Popular Sponsored Recommendations

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

Ecommerce Guide: How to Manage Order Volume Spikes

Oct. 2, 2023
Master the art of delivering a seamless ecommerce shopping experience! Learn how to streamline your operations to successfully manage seasonal sales order spikes.

Voice your opinion!

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