Dell reports drop in profits by 28 per cent
Worldâ€™s largest maker of personal computers, Dell has reported that their quarterly profit fell 28 percent. In fact, they have set a revenue forecast that has led to analysts asking whether the company had lost the growth momentum of past years. The company is struggling in the market where the declining reputation for their customer support has led to fall in sales. In addition, retail markets for computers powered by AMD processors has really picked up.
Dell has no computers on their store, which comes powered by an AMD processor. In addition, reports have shown that demand for Macintosh computers has also increased with the launch of cheap computers like the Mac Mini. Nothing has helped Dell with their sales figures. The company reported a Net income of $606 million for the companyâ€™s third fiscal quarter.
This comes to around 25 cents per share, which is a drop from net income of $846 million, or 33 cents per share last year. Dell had been focusing on cheap computers to increase the number of PCs sold by the company. However, low profits and margins have led to a decline in profit figures. As a result, Dell had to launch a series of high end gaming machines to get back higher profitability on their products.
Dell sold 9.2 million computers in the quarter.