Dell sees 8 per cent fall in sales

And CFO predicts more of the same for Q3

Alienware parent company and computer manufacturer Dell has reported an 8 per cent fall in revenue and predicts another for the next quarter.

Revenue for Dell's Q2 was $14.5 billion, compared to $15.7 billion for the same period last year. Net income stood at $732 million, an 18 per cent fall on last year's $890 million.

"In the third quarter, given the macro environment and soft Consumer business, we expect revenue to be down 2 per cent to 5 per cent sequentially," said CFO Brian T. Gladden during the company's earnings call.

He also explained some of the factors leading to lower sales for Q2.

"In the quarter, we saw the channel drawing down inventory in anticipation of the Windows 8 launch. We also continued to see discretionary spending directed to alternative mobile devices like tablets and smartphones."

Windows 8 is currently due for launch on October 26.

"We're transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term," added CEO Michael Dell in a statement.

"We're clear on our strategy and we're building a leading portfolio of solutions to help our customers achieve their goals."

Dell also announced that yesterday Marius Haas, has joined the company as president of Enterprise Solutions.

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Latest comments (3)

Chris Madsen9 years ago
Now my friend always said dell was really crappy, didn't have much experience myself with dell products. Then he got a brand new dell laptop from the goverment for school use, webintegrator, after 1 month it started to crash with blue screen just by going into google. I don't think that is reason for their 8per cent loss, but I do think their Alienware products are over priced since I could get a better gaming laptop for less.
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Bruce Everiss Marketing Consultant 9 years ago
PCs are just commodity items, the brand has very little to do with the experience.
I buy mine from the Dell outlet and have just invested in an i5 notebook from there which is perfect for my requirements. However it is mainly used on my knees whilst watching TV, for mobile use my Nexus 7 is a far better solution and this is Dell's problem. Basically other, non PC, devices are taking their customers, especially 7 inch and 10 inch tablets. This is only going to get worse with new tablets on the way from many key players.
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Jeff Wayne Technical Architect 9 years ago
I made the fatal mistake of buying a Dell XPS 720 a few years ago only to learn they put refurbished cards in the machines rather than new ones. One of the NVidia cards died after a few weeks which was repaired only for the other one to die 3 months later. Any new gaming rig for me will either be back to custom build myself or one from Origin PC if I win the lottery (Big-O flagship is like 15k!). Laptops I've had for University and work that were Dell have always been fine however in my experience. Personally can't really stand all the preloaded bloatware that gets forced on you either from them.
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