Print 43 comment(s) - last by MarkTheTech.. on Nov 27 at 1:27 PM

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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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)

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation

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