Dell, one of the world’s largest PC makers (second only to Hewlett-Packard), has seen its profits drop by nearly two-thirds as the global financial crisis mowed down computer sales.
Dell posted a net profit of only $290 million in a three-month period compared to $784 a year ago. Overall revenues fell to $12.3 billion.
However, analysts have initially pegged the numbers to be worse than what is now reported. Whether this can be seen as yet another sign that the decline has bottomed out will only be seen in the weeks and months ahead.
The global PC market is a tough and competitive environment where brands from Asia have risen to be legit contenders to US PC makers due to pricing and availability. Chines and Taiwanese brands have dominated the Asian market – one of the largest – robbing, among others, Dell of potential revenue.
Dell was forced to cut costs, letting go of 9,000 positions worldwide.
Source: BBC
