Dell suffers financial black eye

by Sylvie Barak on 20 November 2009, 09:07

Tags: Dell (NASDAQ:DELL)

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The sun'll come out tomorrow

But next year is where Dell predicts it will really see its fortune picking up, with Michael Dell declaring, "the momentum we're seeing in the enterprise customers around client has nothing to do with Windows 7 at this point. We are seeing a pipeline of Windows 7 that's starting to build for enterprise customers really next year." 

Enterprise, which is Dell's bread and butter, is starting on the long road to recovery already, but SMBs, which are the main targets of Dell's efforts, are still finding it tough, with only marginal improvements to be seen on a global scale.

Dell, which now trails both HP and Acer in PC sales, has been trying to re-invent itself, modeling itself to become a hardware and services company instead of just a box maker.

Trouble is, HP has such a head start, it's hard to see Dell with much chance of gaining ground. Last week when HP released its financial results its earnings per share were up, despite revenues being down eight per cent.

Nevertheless, Dell is in position and is ready and waiting to catch the 2010 windfall it believes will be its saving grace as technology spending increases.

Dell's shareholders apparently don't share the firm's enthusiasm, however, as stock in the company dropped a painful six per cent to $14.87 in after-hours trading, after closing down about one per cent at $15.87 on Thursday.



HEXUS Forums :: 7 Comments

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Dell have been killed by Acer in the PC/Laptop/netbook sector.

I have to say, buying new business PCs and laptops used to be a matter of which dell to buy, not which make, but nowadays Dell hardly feature in our purchasing.

They are still strong in the server marketplace though.
The main reason we still sell Dell for our business systems is the warranty aspect, never had an issue with Dell's business side of support, however Acer's support is shocking!
Oh dear how times change…………poor Dell…………..NOT!
Dell needs to make itself competitive. Their machines are lackluster and not really all that great value. In fact, the only Dell machine I've had a remote interest in possibly buying is the Mini 10v, and that's just because it's a Linux netbook (still with the crappy-ass 945 IGP though, which has put me off).
I wouldn't blame the economy or Microsoft. I would blame the decline in customer support and lack of innovation. I own two dell laptops, form the expensive ones if I may add, and the driver support to say the least did not even last a year after the purchase. One of the main reasons I bought a Dell in the first place was for continuing support for my machine from qualified staff not from some telephone exchange with a sales person not having a clue what a SATA HDD is…