'Post-PC' Victim Dell Profit Haemorrhage 72%

Written by Oonagh Reidy     16/08/2013 | 09:26 | Category: HOME OFFICE

Dell haemorrhages as PC demand goes "flat"

'Post-PC' Victim Dell Profit Haemorrhage 72%

The PC major announced q2 profits slid a massive 72% to $204m as it fails to keep up in the mobile race. 

Dell said Q2 sales were "flat year over year" at $14.5 billion, although its enterprise division did grow. 

Brian Gladden, Dell CFO, admitted a "challenging environment," but said "we remain committed to our strategy and our customers, and we're encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our Enterprise Solutions." 

Computing sales fell 5% to $9.1bn, with mobile PC's down 10 percent, in stark contrast to Samsung, Apple who profits are driven by mobile sales. Desktops rose 1 percent however, income from computing slumped a massive 71 percent. 

Dell second quarter fiscal 2014 results did have some good news. Enterprise and Software sales rose 9% to $5.8 bn , although included the benefit of the acquisition of Quest. 

To quell investor fears, the Texas giant, who may be about to go private, claimed to be the only vendor among the top five worldwide to increase PC shipments in the past two quarters.  

Dell did not providing an outlook, given its privatisation plans although large investors including 'activist' Carl Icahn, oppose Michael Dell's plans. Shares fell slightly to US$13.62.  

Breaking News

  • OZ eButton Could Save Your Life

    OZ eButton Could Save Your Life
    Australian engineer Ian Kinny has created a Bluetooth LE-powered personal safety eButton which allows users to call for help via the click of a button.

  • New LG 65

    New LG 65" 4K Ultra HD TV with webOS
    Radical improvements in content functionality and style are the defining features of the latest Smart TVs and this is especially noticeable with LG's new 65" 4K Ultra High Definition UB980T TV that comes with slick new software called webOS.

  • Foxtel Welcomes OZ Copyright Discussion Paper

    Foxtel Welcomes OZ Copyright Discussion Paper
    Foxtel has welcomed the Government's online copyright discussion paper and actions to stem piracy, saying it "represents a positive step in protecting the hard work of content creators and distributors".