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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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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.


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