“Computer maker Dell (DELL) blamed weak demand, heightened competition and poor execution for its disappointing first-quarter results and dismal second-quarter guidance, issued late Tuesday,” Patrick Seitz reports for Investor’s Business Daily. “Dell shares were down more than 17% midday Wednesday on the earnings results.”
“Dell’s Q1 sales fell 4% from the year-earlier quarter to $14.4 billion, which was $500 million short of Wall Street’s target,” Seitz reports. “Earnings per share fell 22% to 43 cents, 3 cents shy of views. It also forecast sales for the current quarter of $14.6 billion, when analysts were targeting $15.4 billion.”
Seitz reports, “In a conference call with analysts, Dell Chief Financial Officer Brian Gladden gave several reasons for the first-quarter revenue shortfall… ‘Our sales execution was not up to our expectations,’ he said. ‘Additionally, the demand environment was tougher than we planned, and I’d specifically highlight weaker demand in markets like EMEA (Europe, Middle East and Africa) and parts of Asia, in addition to public markets. Finally, we’re seeing a more challenging competitive environment in a few areas of the business.'”
“Gladden said Dell also was affected by consumers shifting spending from PCs to ‘alternative mobile computing devices,’ a veiled reference to Apple’s (AAPL) iPad tablet,” Seitz reports. “It marked the first time that Dell said competition from mobile devices such as tablets and smartphones was impacting its PC business, Sterne Agee analyst Shaw Wu said in a research note Wednesday. Dell’s consumer sales shrank 12% from a year earlier to $3.04 billion… And Dell isn’t expecting much of a bump in business from the release of Microsoft’s (MSFT) Windows 8 operating system later this year. ‘Corporations are still adopting Windows 7, so we don’t think there’ll be a massive adoption of Windows 8 by corporations early on,’ said Dell CEO Michael Dell on the call.”
Read more in the full article here.
MacDailyNews Take: Hey, Mikey, maybe you can make it up on volume?
Bwahahahahaha! (The sweet, sweet schadenfreude is particularly thick and juicy today, isn’t it?)
Karma sure is one helluva beautiful bitch!
Related articles:
Apple now worth 23 times Dell’s market value – May 23, 2012
Apple now worth 22 times Dell’s market value – May 23, 2012
Apple now worth twenty times Dell’s market value – April 3, 2012
Apple now worth nineteen times Dell’s market value – March 26, 2012
Apple now worth eighteen times Dell’s market value – March 19, 2012
Apple now worth seventeen times Dell’s market value – March 12, 2012
Apple now worth sixeen times Dell’s market value – February 29, 2012
Apple now worth fifteen times Dell’s market value – February 15, 2012
Apple now worth fourteen times Dell’s market value – September 20, 2011
Apple now worth thirteen times Dell’s market value – August 26, 2011
Apple now worth twelve times Dell’s market value – January 27, 2011
Apple now worth eleven times Dell’s market value – September 23, 2010
Apple now worth ten times Dell’s market value – September 09, 2010
Apple now worth nine times Dell’s market value – June 01, 2010
Apple now worth eight times Dell’s market value – May 21, 2010
Apple now worth seven times Dell’s market value – January 26, 2010
Apple now worth sextuple Dell’s market value – October 20, 2009
Apple now worth quintuple Dell’s market value – February 12, 2009
Apple could buy Dell outright; Mac-maker has more cash on hand than Dell is worth – October 21, 2008
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
Beleaguered Dell: Shut it down and give the money back to the shareholders – March 02, 2007
Biting words on Apple come back to haunt Dell – February 10, 2007
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006
Apple now worth more than Dell – January 13, 2006