Dell Struggles As Consumers Turn Off Buying A New PC

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Dell Australia is not saying how much their business has declined in the last quarter after the US PC maker reported a 47% slump in profits.ChannelNews has been told the slump in sales is well into double digits as consumers choose new tablets powered by Android and Apple iOS over PCs from Dell.

Shortly after the Company admitted that Asia Pacific revenues had fallen by over 11%,  shares in the Company, who gets 70% of their sales via the PC market, fell 2.3 percent in after-hours trading.

Company Chief Executive Michael Dell warned Dell “sees the challenging global macro-economic environment continuing in the fourth quarter.” Dell said revenue in its fiscal third quarter fell 11 percent to $13.7 billion.

It posted net income of $475 million in the fiscal third quarter, compared with $893 million a year earlier.

Dell said its revenues for Asia Pacific region, including India, Australia, New Zealand Singapore and Malasia were down by 11 per cent for the third quarter ended October 31, compared with the same period previous year.

Not helping Dell is a move away from PCs and a rejection of the new Windows 8 operating system from Microsoft who has also moved to compete head on with Dell in the fast growing tablet market.

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