Dell Technologies is having a horror run in the consumer PC market with sales falling 22% with the Company laying off executives in Australia with others deciding to take “A redundancy” package.
The Companies B2b business faired better resulting in their overall personal computer business delivering US$12.4 billion in revenue down 4% overall.
enterprise PC sales grew 8% in the quarter.
During the past 12 months consumer PC sales fell from US$2.38b to $1.858b with the Texas based Company claiming that premium notebooks were performing better than value notebooks.
The business has moved to cut jobs primarily in sales without disclosing how many workers would be affected.
The company took a A$482 million charge for severance expenses in the last quarter.
The business reported better-than-expected revenue selling servers due to demand for systems that can manage AI workloads.
Orders of AI-optimized servers were US$3.2 billion in the fiscal second quarter, up from US$2.6 billion in the previous period, Dell said overnight.
When including server revenue and Dell services income sales jumped 9% to $25 billion in the period ended Aug. 2. A
The shares rose about 3% in extended trading, after jumping 45% this year.
The stock closed at $110.74 in New York.
Overall margins were negatively impacted by a higher mix of AI servers and a more-competitive pricing environment, Chief Financial Officer Yvonne McGill said on a call.
Bloomberg recently reported that the PC market has seen a historic decline over the last two years after consumers, businesses and schools purchased laptops in the early months of the pandemic and have not replaced these PC’s.
Currently Dell is exploring the possible sale of SecureWorks their a cybersecurity company,
Dell, which owns a majority of SecureWorks stock, unsuccessfully explored the sale of the company in 2019. SecureWorks has a market value of about $772 million.
