“Dell Inc. said Thursday that its net income dropped 54 percent in the latest quarter and amid signs the company isn’t fully benefiting from the computer industry’s fledgling recovery,” Jordan Robertson reports for The Associated Press.
“Dell’s numbers missed Wall Street’s forecasts, and the shares fell almost 6 percent in extended trading,” Robertson reports. “In the last quarter Dell lost its ranking as the world’s No. 2 personal computer maker, a slot now held by Taiwan’s Acer Inc.”
Robertson reports, “Dell’s work force fell by 9,300 last year to 78,900 at the end of January, the last time Dell gave employment figures. The company also has changed the way its makes and sells computers, leaning more on contract manufacturers and retailers instead of doing everything in house.”
“The changes weren’t enough to lift Dell’s profit in its latest quarter, which ended Oct. 30. Dell’s net income fell to $337 million, or 17 cents per share. That compares with $727 million, or 37 cents a share, in the same period a year ago,” Robertson reports. “Revenue fell 15 percent to $12.9 billion.”
“Analysts polled by Thomson Reuters expected Dell to earn 28 cents per share on $13.2 billion in revenue in the latest quarter,” Robertson reports. “Dell, which is based in Round Rock, Texas, said it expects revenue in the current period to be better than in the prior quarter, but it attributes that to the seasonal benefit of consumers buying PCs around the holidays.”
Full article here.
MacDailyNews Take: Relying on holiday consumers remaining ignorant and undiscerning is a risky proposition with so much information at their fingertips and those Apple Retail Stores now open right around the corner.
• Apple now worth sextuple Dell’s market value – October 20, 2009
• Apple now worth quintuple Dell’s market value – February 12, 2009
• Apple now worth quadruple Dell’s market value – May 01, 2008
• Apple now worth triple Dell’s market value – December 06, 2007
• Apple now worth double Dell’s market value – July 27, 2007
• Apple now worth more than Dell – January 13, 2006
Ah, such sweet schadenfreude! Yum. More, please. Hey, Mikey, SIDAGTMBTTS!
[Thanks to MacDailyNews Reader “sparkplug” for the heads up.]