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Dell remains optimistic for Q4

The computer market has been through a very tough year with consumers and businesses simply not buying due to the poor economy. This has led to some heavy losses for some in the computer industry. The economy is slowing starting to come back and the launch of Windows 7 is expected to drive some upgrades in the 2010.

The CPU market grew by 23% showing that computers were shipping in larger numbers in Q3 2009. The same quarter, Acer was able to kick Dell out of the second place spot in the top global PC shippers list. Dell announced its Q3 financials and outlook for Q4 this week and while trying to be upbeat, the Q3 numbers were not great compared to 2008.

EWeek reports that Dell saw its profits drop 54% for the quarter compared to 2008. Net income for the quarter was $337 million; net income in Q3 2008 was much higher at $727 million. Despite plummeting revenue, Dell is upbeat for Q4.

Dell CFO Brian Gladden said that the quarterly results were "showing some encouraging signs for us, especially in our large enterprise and SMB businesses, where we had sequential growth for the first time in seven quarters."

Things look better on a per category basis for Dell with its large enterprise revenue growing 4% compared to Q2 to $3.4 billion. Revenue from small and mid-size businesses was $3 billion, up 5% from the previous quarter, but down 10% from the same quarter in 2008.

Dell is looking forward to continued growth in Q4 in part thanks to expected consumer upgrades from the launch of Windows 7. Gladden said, "We built more backlog than normal due to [Windows 7's] late-quarter release, and the order dynamics that we saw during the end of October."

Dell is still continuing its aggressive cost cutting measures, which so far have included layoffs and plant closures. These cost cutting methods are likely to be leveraged next year with very aggressive pricing on enterprise PCs and servers to allow dell to aggressively gain market share according to analysts.

Technology Business Research analyst John Spooner said, "Despite lackluster business PC and server unit sales numbers in its 3Q09, TBR expects Dell to leverage its recent cost cuts … to fund aggressive PC and server pricing during the expected corporate PC upgrade cycle in 2010. We believe Dell has been laying the groundwork for this move for some time. In fact, it will leverage its lower costs to provide aggressive hardware pricing to large enterprise customers in order to win in large bid situations. At the same time, Dell will gain the opportunity to attach additional items, including its storage and newly acquired Dell/Perot Systems services, with large PC and server deployments."

The cost savings measures are expected to allow Dell to reduce the costs of its products enough that it can win large bid contracts that it can then turn around and bundle with services such as those provided by the Perot Systems company that it acquired in September.

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Heres an astonishing idea
By Breathless on 11/20/2009 11:52:47 AM , Rating: 5
Dell.... Invest in your country and maybe they will invest in you.

Racism aside, americans don't want to speak to Indians when they have a problem with their PC. You need to fire some of them and hire more american workers. Yes, they would cost more money, but in the long run you'd probably get more sales because people could be more confident purchasing your product knowing they would be able to understand the support rep on the other side of the phone when they have an issue. I know outsourcing is the industry standard thing to do now, but I don't care.

RE: Heres an astonishing idea
By R6Raven on 11/20/2009 11:57:04 AM , Rating: 2
While I am tempted to agree, last I heard if you request they transfer you to someone state-side, they will. Or was that Microsoft...

RE: Heres an astonishing idea
By Breathless on 11/20/2009 12:02:54 PM , Rating: 4
I have not heard that, so its new to me.

This is coming from someone who did onsite Dell hardware warranty support for a few years. The number one complaint I heard from the hundreds of customers that I helped (and still help many of them since they don't want to deal with dell) is that they "couldn't understand that da*n person from India".

RE: Heres an astonishing idea
By Maximilian on 11/20/2009 12:20:26 PM , Rating: 2
Exactly! I just cancelled my order with dell because of the indian people at the other end of the phone, they dont understand me, i barely understand them, even if they did understand what i asked they usually give a generic "i dont know what the hell im talking about" type answer that dosent answer the question i asked!

Also the double standards BS, some people phone up and get £75 off, others get a free monitor, a good chunk get nothing but wasted time and grief. Didnt like that much, it happens with other companies but its not as prominent as it is with dell.

RE: Heres an astonishing idea
By damianrobertjones on 11/20/2009 1:18:58 PM , Rating: 2
Order online. It's easy.

RE: Heres an astonishing idea
By The0ne on 11/21/2009 11:07:48 PM , Rating: 2
Here's hoping you don't have issues with any of your Dell purchases. GL hahahah

RE: Heres an astonishing idea
By jonmcc33 on 11/20/2009 3:51:00 PM , Rating: 2
I supported Dell business class workstations for about 7 years. I always got Americans on the phone. Better yet I got DCSE certified and could use FastTrack to order the replacement parts without even talking to anyone.

Support is one thing but I have always liked the quality of Dell hardware. I would have no problem purchasing a new Dell laptop online.

RE: Heres an astonishing idea
By TheRequiem on 11/20/2009 4:20:23 PM , Rating: 2
I have bought two Dell systems and I will never buy one again. Last time I bought a Dell PC, it was a recent Alienware. They never shipped me my PC Work Number (the special number in the Alienware folder or on the PC that allows Technical Support to find your PC). To this date, they have been unable to give me this code or find my PC and thus, have never been able to help me. Mostly because they are in fact from India, they don't know what i am talking about and the transfers and hold times were endless. This is unacceptable. I am on my own with the $3000 PC that I bought.

Dell will now lose sales from me because I will not buy for the reason stated above. Nice going Dell.

RE: Heres an astonishing idea
By Breathless on 11/20/2009 4:39:19 PM , Rating: 2
That is true... when I fixed the workstation machines I always got to speak to gold support, but that was only when I was at some business doing the repair. They always were american then.... but, the average consumer got screwed... and when the part that they sent out (to me) didn't fix the problem (a frequent occurrence), I had to sit on with the foreign support and argue with them for sometimes half an hour to get them to send the part that I knew needed to be replaced! LOL

RE: Heres an astonishing idea
By Taft12 on 11/23/2009 11:09:02 AM , Rating: 2
That's all well and good for business-class PCs (Latitiude, Optiplex).

If your laptop or desktop says Inspiron on it, then hellloooo Rajiv! (even though he tells you his name is Matthew)

RE: Heres an astonishing idea
By Breathless on 11/20/09, Rating: 0
RE: Heres an astonishing idea
By TheRequiem on 11/20/09, Rating: 0
RE: Heres an astonishing idea
By jhb116 on 11/20/2009 8:52:53 PM , Rating: 2
It is easy to say invest in your (our) own country. Problem is that labor in our country is to expensive - partially due to our standard of living and partially to our laws requiring a certain level of minimum wage. (BTW - not complaining about either - just stating facts..) We can't have it both ways - if labor is cheaper overseas then companies are going to flock there to stay competitive - as they should.

Personally - as long as the customer service rep can speak fluent English (American version) then I'm ok. I think there should be some sort of language req that says something to the effect that the customer service rep has to be fluent in whatever language that person is providing customer service to.

RE: Heres an astonishing idea
By Gio6518 on 11/21/2009 2:28:04 PM , Rating: 2
if labor is cheaper overseas then companies are going to flock there to stay competitive - as they should.

that is about the biggest reason why this country is falling apart. go ahead keep cutting jobs and send them overseas, then when they arent selling their product, from people being unemployed or underemployed (not making a decent wage)they complain the economy is bad, well that exact mentality is whats creating the poor economy...if you pay people a fair wage (more than they need just to survive barely) they will go out and spend money on new product, and services. Where else are they capable to sell their product in China or India where they make $10 a day they cant afford extra non essential goods. Americans are one of the largest group of consumers out there, along with Japan, and that corporate greed that you seem so proudly to endorse has destroyed first the people now its finally catching up to the corporations.....

and as far as them making claims that the economy is picking up due to the fact that the DOW is again over 10k, is its going to be temporary, company stocks are rising due to the reduction in work force and hasn't caught up to them yet, (Again less people working = less people spending) and the stock market WILL start to decline again after the first of the year.

best way to repair this economy is either to shut down the borders or raise import taxes and also force international companies that want to sell their products in america it must be manufactured in America !

RE: Heres an astonishing idea
By WackyDan on 11/21/2009 7:06:55 PM , Rating: 3
Well... Go ahead and force all companies to manufacture here and have call centers here for all customers. Know what happens then? You end up paying $100's more for you beloved PC that you are typing on right now. - among other products.

Before you think that all jobs are being sent overseas... I work for a Chinese company that has about 2500 of us working in the US and Canada. They've made a significant investment here, and my salary indeed gets taxed by the US gov't, my state gov't, etc.

RE: Heres an astonishing idea
By Gio6518 on 11/22/2009 10:35:32 AM , Rating: 2
I work for a Chinese company

sounds like your trying to protect your personal intrests

Well... Go ahead and force all companies to manufacture here and have call centers here for all customers. Know what happens then? You end up paying $100's more for you beloved PC that you are typing on right now. - among other products

ive been around long enough to see the devestation the outsourcing has done to our country. Once pretty much everything was made here and we had to pay for American made product, and had no problem doing so and our country flourished.

and as far as lowering priced all i can say is BULL, ive seen companies using american labor lets say call centers and outsource their work, those companies never lowered their prices, they showed more profit and gave gave themselves outrageous raises, and a hearty pat on the back, Levi jeans once made in America, now outsourced price remained exactly the same, and i can go on and on rattling off company after company, all day your viewpont is based on company propaganda.

When we started outsourcing, the product we recieved back is substandard and even sometimes toxic.

go to home depot, grocery stores etc.
they cant outsource the cashier jobs, so they replace them by self checkout, do you get a discount for using those lanes HELL NO, the comapny just profits more, just the same as outsourcing has done for ALL companies

RE: Heres an astonishing idea
By vikramsbox on 11/20/2009 9:58:01 PM , Rating: 4
Outsourcing is all over the place and its mutual between countries. The US govt allows outsourcing in order to gain investment avenues in countries like China and india. If you faithfully follow your anti outsourcing maxim, what will you buy then? Intel's CPU's are designed by Indians (Ronak Singhal), all the mobos are made in China and Taiwan, all laptops (except the high end ones) are made in China, MS's software developers are mostly Asians, the leading car tech and electronic tech are developed in Japan, etc etc.
You only see the human factor in support issues and that's why you complain. What you don't choose to see, you don't complain about.

RE: Heres an astonishing idea
By rippleyaliens on 11/22/2009 2:18:53 PM , Rating: 2
The advantage with outsourcing, is the Labor wages. For the corporations. In India and China, I will say, that combined those 2 countries have 2-3x the amount of college educated personal working for them. (2.5 BILLION people between the 2).

The problem with the USA with regards to this, is the abundance of low wage professionals in those countries. In India for instance, a CCIE makes 35-40k USA there.. Over here simular CCIE makes 110-125k. HIGH end CCIE's not noobs. Some people complain, the difference, yet that 40k in india = 150-175k in the level of lifestyle.

Just using this simple thought. Different economies. THE PROBLEM with that is, our country is import heavy, STOCK MARKET Dependent, Pure Profit driven. Which is good, except the simple things are popping up.
1. Level of jobs available in usa that is non-exportable, is slipping very fast.
2. THE USA cost of living purely devastates those 2 other countries. IE the medium house in the usa = $200k which is well beyond the capabilities of the bulk of the USA..
3. The other 2 countries do not import no where near the level in which the USA imports.

When WALMART is the #1 company on the planet, with the bulk of the items in the store from china.. This says alot. Companies are complaining that their sales are down, that home sales are in a rut, that car sales are flat..

YET GM / Chrysler are getting there due.. They transported car manufacturing to mexico/canada/china= YET expect americans to keep buying cars??? NOT GONNA HAPPEN...
Vicious cycle, that is slowly closing.. Other than car builders, The USA has no other MAJOR Manufacture Industry.. More so service, YET how much service needs to be serviced???

I still believe to this day, that NAFTA, and FREETRADE was the downfall to this country.. When i was a kid, i remember when the deficit at 20-30 billion was insane.. now we are at 10Trillion and counting.. WTF..

RE: Heres an astonishing idea
By callmeroy on 11/23/2009 9:44:38 AM , Rating: 1
I actually dislike Dell because I think most of their products are cheap junk these days either that or their quality assurance teams are terrible at their jobs.

I used to run an IT shop that was largely dells a few years back, all dell servers mostly dell workstations until we started getting HPs.

I'm talking about 7 years ago...but I know we purchased the premium support and at least with that you spoke with English speaking agents/techs -- we had absolutely no problem at all understanding them.

RE: Heres an astonishing idea
By PoohPall on 11/26/2009 5:37:59 AM , Rating: 2
If the average American had better schooling then perhaps understanding an Indian person would be easier.

Why invest in America if there is little or no return on your investment ?

Oh no!!!!!
By TechIsGr8 on 11/20/2009 11:45:25 AM , Rating: 2
OMG, Dell's profits are down 54%!!!! Armageddon!!!

Sarcasm aside, this is the problem with the American economy. Everything is based on comparative results that have to please the masters on Wall Street. Why wouldn't it make sense to report it this way: "Dell shows profit in spite of sh1tty economy". Amidst all the companies that are going out of business in the sick global economy, which Wall Street single-handedly destroyed, why not focus on how great it is that they showed a profit? I wish Wall Street would just be shut down.

RE: Oh no!!!!!
By invidious on 11/20/2009 12:03:24 PM , Rating: 2
which Wall Street single-handedly destroyed
The housing market crash was heavily affected by biparitsan federal legistlation.

RE: Oh no!!!!!
By drebo on 11/20/2009 12:07:19 PM , Rating: 2
Benchmarks like this are important because they show the direction a company is heading. When you compare Dell's relative shipments/income/revenue/profit to Acer's relative shipments/income/revenue/profits, you being to see the trend of Dell versus Acer. Now do the same for any other two companies. These benchmarks are important for anyone interested in investing in these companies as well as large enterprises and savvy consumers because it somewhat speaks to the longevity of their purchase. Most people do not want to buy from a company that looks like they're going out of business tomorrow.

If a company cannot continue to grow their business, they are generally not viable longterm. You cannot just sit there and stagnate, saying "Oh, we made profit this year, we must be fine". That's a great way to watch your competitors trample all over your marketshare.

RE: Oh no!!!!!
By sebmel on 11/20/2009 7:28:13 PM , Rating: 1
Why wouldn't it make sense to report it this way: "Dell shows profit in spite of sh1tty economy"

Perhaps because in the same quarter that Dell profits fell 54% the company Michael Dell, a while back, told to hand back it's capital to investors and close down increased it's profits 47%.

RE: Oh no!!!!!
By michael2k on 11/20/2009 8:21:13 PM , Rating: 2
Actually, no. If Dell's profits are down 54% that means they are too big as a company and need to lay off about 50% of their workforce.

In other words, if they had 10 employees and had profits of 1m, and then next year they had 20 employees but profits of only 1m, then they either need to cut costs or cut people.

If the profits continue to fall, of course, so should headcount.

Think of it like losing weight. If you eat 50% less, you're weight should drop!

Anyone else interested in the Zino HD?
By Bateluer on 11/20/2009 11:20:12 AM , Rating: 2
Looks like something I'd want to connect to my TV, which I have to actually purchase. Should have enough power with its HD3200 and the dual core AMD CPU options to drive 1080p video just fine.

RE: Anyone else interested in the Zino HD?
By invidious on 11/20/2009 12:22:30 PM , Rating: 1
I would be interested if it didn't cost so much, I've heard it is gunna be like $800. This makes no sense to me, similar products are offered in the $300 range. For less than $800 I could just build a whole PC and have it sit next to my TV indefinately.

I am getting tired of waiting for a decent wifi ready retail solution to this. It really isn't that difficult. I am probably just going to end up buying a cheap laptop with hdmi out to use as a media PC. It will cost more than what this solution needs to, but I can also just use it to replace my old laptop which is getting old. I will probably use my old laptop has a NAS hub and stick it in a closet with some external hard drives or something.

By Bateluer on 11/20/2009 1:15:02 PM , Rating: 4
800 dollars!? The top end 'standard config' is 649, with discete Radeon 4330, 4GB of RAM, WiFi BGN, and a 20in WS LCD.

They start at around 230 for the base model.

Meh line
By donjuancarlos on 11/20/2009 2:51:11 PM , Rating: 4
Personally, I've been underwhelmed with their product line as of late. Low end computers w/ a high end price and cheap finishing materials that cause computers and laptops to look beat up in a relatively short time (especially all that smudge-riffic piano black on Inspirons and the scratch-loving finish on the Studios).

I used to unequivocally recommend Dells to friends and coworkers. I've probably bought/helped purchase over 200 Dell computers in my life. Dell reliability for me has still been very good but the designs of mid- and low-end computers and laptops are both middling and missing key features that other companies include in their lower and mid range lines. Lenovo has gotten a lot of business off of me lately because of that.

RE: Meh line
By roostitup on 11/21/2009 4:14:23 AM , Rating: 3
The high end laptops still lack A LOT of quality. The XPS and XPS stuio lines fit together horribly, crack, come apart, scratch and feel cheap. Dhell will never get my business again.

profits do not equal sales
By invidious on 11/20/2009 12:00:34 PM , Rating: 2
54% reduced profits means they are still making a profit, which is better than many other industries. Any profit during a recession means your company is doing just fine. Dell has a very conservative business model with tons of corporate and government contracts to keep them afloat in times of reduced consumer spending, don't lose any sleep over this.

RE: profits do not equal sales
By michael2k on 11/20/2009 8:42:52 PM , Rating: 2
But not better than, say, Apple. Not better than RIM. Not better than Google.

If you're losing profit, then you're too bloated. It means you're employees aren't pulling their weight.

By rippleyaliens on 11/20/2009 10:20:36 PM , Rating: 2
With Dell.. IF you purchased a server/workstation/Business Item, it is American support. In my career in IT, as a contractor, going from business to business, ANY Business class support always went to an american voice. BUT when doing home computer support, for customer's home pc, yah, i got the re-route to foreigners.

With regard to the indian's.. I can understand them fairly decently, BUT!!!!, 7/10 times, with ANY issues, i am re-routed to their handler. The guy who overwatches the rest of the group. I am understanding to the outsourcing and such, BUT when it takes 20+min, for the guy on the other end of the phone, to grasp, "that a part is actually broken" it is stupid. Had a customers laptop hard drive fail. boom.. I called, and i Kid you not had to wait 20min, and 10+ Scripted tests, to determine that said hard drive is bad... That is the part that is frustrating with these companies..

Not to mention, the killer, that urks me to high heaven.. EVERY support person on a pc level call, that i have talked to, DOESNT EVEN OWN A DELL COMPUTER!! That is piss poor.

By roostitup on 11/21/2009 4:10:44 AM , Rating: 2
I hear you, the technician that did the work on my laptop had the same issues and in the end he ruined my laptop trying to fix it. I sent the laptop back to the Dell warehouse where they were suppose to fix it, but they broke it even worse! I had to demand a replacement which was VERY hard to get. You would think that after YOUR technician broke the laptop, promised a replacement and having the repair center brake it even worse (when told I was originally getting a replacement) that they would be willing to replace it immediately without questions, but 10+ phone calls over a few months seemed to be what you need to do, which is BS!

All this repair work could have been done by me personally without a hitch, but I did not want to void my extended warranty. Dhell is digging themselves into a hole.

By RMSistight on 11/21/2009 10:13:36 PM , Rating: 2
It's plain and simple. If you buy a machine from Dell Home and don't buy the extended warranty, you get the crappy support. I've personally had great experiences with Dell after purchasing their extended warranty and never spoke to an Indian. Actually, I'm only dealt with the online Dell Chat to get my problems fixed. Never had an issue.

By Taft12 on 11/23/2009 11:13:29 AM , Rating: 2
If you only used chat, how do you know if the rep was in India or N America?

By Uncle on 11/20/2009 2:22:35 PM , Rating: 3
Like I said before< I knew Dell was in trouble when they let Walmart sell their computers. We all know the quality of products in Walmart, I'm not complaining, Their is a segment of society that needs Walmarts prices.

By Tony Swash on 11/20/2009 11:24:13 AM , Rating: 2
Dell should just close the company and give the money back to the shareholders :)

caption the picture
By vapore0n on 11/20/2009 3:37:26 PM , Rating: 2

They deserve it...
By roostitup on 11/21/2009 4:01:09 AM , Rating: 2
Dhell deserves everything coming to them. I'm still upset about the over $3,000 laptop that I bought when I could have got something MUCH better & cheaper with MUCH better customer service from another company *cough* Mac *cough*. Mac lost my business because they didn't offer SSD's and LED screen at the time and now I'm regretting it. Multiple service calls and a replacement laptop later I am somewhat happier, but had to go through SO MUCH BS and international phone calls that in the end makes Dhell lose a future customer. Sorry Dhell, but you did it to yourselves.

By notamerican on 11/23/2009 1:41:26 PM , Rating: 2
I bought a DELL XPS 2 months ago. After 2 technicians and sending it back to a service center (as well twice) nothing changed. My computer is still not working properly. After spending 1600Euro for this PC I will never consider a DELL Laptop again.
Thank you dell!!

No Probem with Dell Computer
By MarkTheTech on 11/27/2009 1:27:06 PM , Rating: 2
I've been working on Dell PC's for the last 10 years both home users and business offices. If you just use the Dell Chat, you don't have to talk direct to India unless you need a faster turn around on parts. But just like HP, Acer you’re going to get somebody from India or the Philippines. The Philippines call agents are much easier to talk to, plus they don't seem as scripted as the India based call centers which sound like robots sometimes. But reading some of the posts, I bet half you posters don't know what you’re talking about.

A.) You got a scratch on your PC or laptop and you expect it to be replaced.

B.) You either kicked your PC or dropped your laptop while waiting for your dumb ass Latte at Starbucks, fcuked up the hard drive and expect Dell to be responsible for your stupid mistake.

C.)You let your kid or cousins kid come over, or neighbors kid come over and load all the dumb Facebook games or they loaded Limewire on your computer and let all the Flash, Malware Trojans build up on your computer causing it to crash and BSOD errors and you expect Dell to bail your dumb ass out.

Half of the home PC's I fix, 60% of them have Limewire loaded and the other 40% have some other bloatware crap on them. Sorry the truth hurts. Ohh and people that spent $3000 for laptop or PC, you’re even dumber, nobody spends $3000 for computer. Don't care how rich you are, even rich people don't spend that kind of money, too many crazy deals out there.

Start making cheaper netbooks!!!
By sapiens74 on 11/20/09, Rating: -1
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook

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