Dell Struggles After Being Rejected By Mass Retailers

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Dell who has been rejected by both Harvey Norman and JB Hi Fi just can’t get it right, with its third quarter net profit declining 54 percent and revenue dropping 54 percent to US$337 million from $727 million in Q3 last year. Revenue dipped to $12.9 billion from $15.2 billion a year ago.

In Australia millions of consumers are visiting the Dell web site according to Company executives, but very few are buying a Dell PC, which has resulted in the Company that built their name taking orders for PC’s online now attempting to sell their range of notebooks and netbooks via retailers who at one stage were seen as arch competitors to Dell.

However CEO Michael Dell said there were signs that the computer industry was emerging from its slump. “We are seeing improvement in overall underlying IT demand that is continuing into the fourth quarter,” Dell said.

“The same is true with momentum in Dell’s business.”Some observers say Dell has suffered because it hasn’t cut prices as aggressively as Acer and Hewlett-Packard. But Michael Dell disagrees. “We think we are holding or gaining share in the right kind of price points. Our efforts on the cost side should expand our ability to profitably compete in a larger portion of the price points,” he said.

CDN: Computer Daily News

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