“Dell Inc’s third-quarter profit slid 47 percent, hurt by lower PC sales, weaker demand from large corporations and the shift to mobile computing,” Poornima Gupta reports for Reuters. “Dell’s consumer PC business is struggling as more and more consumers are using smartphones and tablets to do basic computing, and the company’s corporate customers continue to defer spending due to the uncertain state of the economy. The No. 3 personal computer maker warned that it ‘sees the challenging global macroeconomic environment continuing in the fourth quarter.'”
Gupta reports, “The company, once the world’s top PC maker and a pioneer in computer supply chain management, is struggling to defend its market share against Asian rivals like Lenovo. It is trying to bolster growth by focusing on products and services to corporations… Dell said revenue in its fiscal third quarter fell 11 percent to $13.7 billion, slightly lower than the average analyst estimate of $13.89 billion according to Thomson Reuters I/B/E/S. It posted net income of $475 million or 27 cents a share in the quarter, compared with $893 million or 49 cents a year earlier.”
MacDailyNews Take: That’s a lot of work, $13.7 billion, just to earn a paltry $475 million, Mikey. Here’s how it’s supposed to be done, brillo head: Last quarter, Apple posted revenue of $36.0 billion and net profit of $8.2 billion. At these rates, it’ll take Dell 4.5 years to earn what Apple did the last 90 days. But, these rates aren’t static: Apple’s revenues are increasing and Dell’s are falling dramatically. And, by the way, it’s not “tablets” that are killing Dell, it’s Apple’s iPad along with Apple’s high margin MacBook Air and MacBook Pro models.
Gupta reports, “Dell’s ‘challenges are frankly the same as before – namely the tough macroeconomic environment and cannibalization from mobile devices using mobile operating systems from Apple and Google,’ Shaw Wu, analyst with Sterne Agee, said.”
Read more in the full article here.
MacDailyNews Take: Hey, we’ve got an idea for Dell, can you guess what it is?
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