Beleaguered Dell’s profit plummets 47 percent

“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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29 Comments

      1. Ok, I can’t take this anymore. This is not socialism, it is dumb, “the sky is falling” Wall Street Capitalism. Pantywaist chicken little Hedge funders panic over iOS Maps “disasters,” and heaven forbid, demand exceeding supply. Just STFU with your brainless blather!!!

      2. I agree with your humorous, but true statement, but this is a discussion on macs and in this case how poorly Dell is doing. Yes, I am prepared the best I can be for the coming inflation, chaos, and what have you living under the current socialist regime. Stock up on food, water, guns, and ammo.

    1. You had to bring Hostess into it didn’t you.

      I’m actually sadden by the news of Hostess shutting down. I have fond memories of coming home after school and grabbing a frozen Hostess Ding-Dong’s out of the freezer. I’m sure all the haters will have something to say but they were good and it was one of life’s simple pleasures.

      Thank you Hostess and the people who worked there. For me, it’s unfortunate I will not be teaching my grandkids that simple pleasure.

      Oh and you can all save the gay ding-dong and any fat or junk food comments. I was a kid and it’s not like you never ate anything that wasn’t necessarily good for you.

      1. Blame the ignorant works who voted them selves out of a job. they had a chance to keep their jobs and keep hostess going, but they decided to kill the company and be unemployed. Idiots!

      2. WHY OH WHY do we have to DIVERT everyone’s attention AWAY from BASHING Michael Dell so we can sob and cry like little girls over the loss of TWINKIES?!?!?

        This place has become a haven of junk food addicts and I’m sick to death of it!!! 😉

  1. Dell seems to be satisfied with doing the same thing over and over again and expecting different results.

    Starting next year, their small profit may no longer exist.

  2. Not poor Dell. I bought a big build windows 7 laptop that within two years has a battery that won’t charge. A power cord that is frayed. Then lets not go back further to the Dell 5150 fiasco. When Apple went with intel: Enter Mac Mini mid 2010 with AppleCare. I also have a MacBook Air 13″. I am a happy Mac lady running some old windows stuff, and Quicken on Parallels. Bye bye Dell.

  3. Dell has barely started to change even though the cannon was fired in Jan. 2007 buy Steve Jobs.

    Better, simpler, cheaper, more usable…Apple has the lead.

    I doubt if Dell can cut it at this late date. Michael abandoned his firm to enjoy retirement & leave it to cookie cutter management and got cookie cutter results and now with him back, I don’t see evidence of resurrection.

    Gotta answer the door when opportunity knocks, not 6 years later.

  4. Microsoft’s, Googledoom’s and Amazon’s models are flawed because in order to run a sustainable business in the long term, they have to have a reasonable rate of earnings to pay for the cost of doing business. Even socialist governments cannot go on giving away free stuff. Money do not grow on trees, it has to be earned. The only reason that these companies stick to this model of giving away stuff is not altruistic at all but more of a devious and selfish way to stage a land grab by taking the short-cut method of brute force. As if the stupidity of the banks and Wall Street have not taught a lesson, the US is going to pay for such chicanery of short-term gain.

  5. Hey, don’t blame Michael Dell! If Apple had just taken his advice and shut down, everything would be fine right now.

    Of course, in retrospect, it would have been nice if he had had a backup plan.

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