Print 80 comment(s) - last by retrospooty.. on Nov 20 at 11:55 AM

Dell's profit fell 47 percent to 39 cents per share while revenue dropped 11 percent to $13.7 billion

Dell's financial report for the third quarter seems to have missed the targets predicted by Wall Street on many levels due to sluggish PC sales.

For Q3 2012, Dell's profit fell 47 percent to 39 cents per share while revenue dropped 11 percent to $13.7 billion from a year previous (Wall Street expected $13.9 billion). Its net income fell from $893 million (49 cents per share) in Q3 2011 to $475 million (27 cents per share) in Q3 2012.

A large reason for Dell's financial tumble is the lack of demand for PC upgrades. Dell's PC shipments fell 8.3 percent in Q3 2012 from a year earlier.

“In a difficult global IT spending environment we saw solid proof points that demonstrate progress in our strategy,” said Brian Gladden, Dell CFO. “A highlight has been the strong progress of our newly introduced servers, with our server and networking business up 11 percent. We’re also encouraged by early interest in our new Windows 8 touch portfolio and the opportunities it creates for our commercial and consumer businesses.”

Looking forward, Dell predicts a fourth quarter revenue of $14 billion to $14.4 billion, which is a bit less than the $14.5 billion analysts were shooting for. In Q4 2011, revenue was $16 billion.

In response to all of this disappointing news, Dell stock dropped to $8.81 this morning, which is the lowest its been since March 12, 2009.

While Dell is looking to Windows 8 for some kind of revival, the new operating system hasn't provided any immediate boost for PC makers. In fact, Gladden said Windows 8 wouldn't affect Dell's financial results for the next two quarters.

"The client business continues to be challenging," said Gladden. "Commercial customers tend to be lagging adopters of a new operating system. They're going to wait."

To make matters worse, Microsoft doesn't solely depend on PC makers for hardware anymore. Last month, it released its first tablet hardware, Surface RT, which features the RT version of the Windows 8 mobile OS. Next year, Microsoft plans to release the Surface Pro, which will run Windows 8 Pro.

Source: Dell

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Windows 8 the savior ???
By drycrust3 on 11/17/2012 12:12:19 PM , Rating: 2
There are 64 bit Linux distributions as well.

RE: Windows 8 the savior ???
By Cypherdude1 on 11/18/2012 7:23:27 AM , Rating: 2
Does anyone was really thinking that Windows 8 will bring people in drove to update their pc/laptops ? Windows 8 is such a radical move and bring nothing enticing to that platform. Why change your machine if W7 does everything you want just fine.
For non-touchscreen devices, Win8 Pro has a lot of extra code the user will never use. Win8 Pro has code for both touchscreens and the regular desktop with the start button. This is what I understand from viewing a review.

M$ is following a familiar pattern of producing an excellent O/S and then releasing a poor O/S: Win98SE, WinME, WinXP, WinVista, Win7, and now Win8 Pro. Intel has their tick-tock release policy, M$ has their's (a little PC humor there, heh, heh):

If you have Win7-64, there's no reason to upgrade to Win8 Pro unless you have a touchscreen. Most desktops and laptops don't have one. Others here have stated some (many?) programs will not work in Win8 Pro. I hope this is not true because, someday, I may buy a Win8 Pro quad-core, quad-speaker 15.6" tablet, upgrade it to 8 GB RAM, 256 GB mSATA and run some serious applications on it.

RE: Windows 8 the savior ???
By StevoLincolnite on 11/19/2012 7:29:29 AM , Rating: 2
Except... The release didn't go 98 > ME > XP > Vista > 7.

You are forgetting Windows NT and most importantly, Windows 2000. - Which was pretty much released at a similar time to Windows ME if I remember rightly.
And worthy to note is that Windows 2000 had more in common with Windows XP than what Windows ME had, as XP was built on the NT kernel and not Win9x.
I remember people at the time claiming XP was just Windows 2000 with a pretty new skin as all the drivers and software pretty much worked in either OS, which was true for the time, until a few service packs later.

As for Vista, it did have a shaky release, most of the issues have been pretty much been fixed a long time ago, most of Vista's problems could be blamed on the hardware manufacturer's poor drivers.

RE: Windows 8 the savior ???
By retrospooty on 11/19/2012 10:38:55 AM , Rating: 2
"The release didn't go 98 > ME > XP > Vista > 7."

From a consumer product perspective it did go 98 > ME > XP > Vista > 7. NT and 2000 were not consumer products. XP was the first one that got rid of the crappy Win95 kernel and used the stable NT kernel in a consumer based OS.

To that I totally agree. MS has a long history of "hit and miss". Win8 is the miss. Probably not as bad as Vista was a miss, but a miss. The UI is great for touchscreens and more irritating than useful for desktops and laptops.

RE: Windows 8 the savior ???
By JPForums on 11/19/2012 9:55:53 AM , Rating: 2
If you have Win7-64, there's no reason to upgrade to Win8 Pro unless you have a touchscreen.
There are reasons, they are just not UI related. Graphically showing download speed and the ability to switch network connections (wired to wireless and back) automatically and without stopping a current download are a couple that come to mind. That said, unless you just like the new interface, it is hard to say that the changes are worth the switch. I needed to get used to it so I could work on other peoples computers. I find the interface less efficient than Windows 7 for non touch screen devices. That said, once you learn the short cut keys, it isn't much of an issue. The under lying controls are still there, but, much like with Vista/7 vs XP, they are a little more obscured. Still, I don't see a reason to upgrade from 7 if you are happy with it. However, I also wouldn't avoid a new computer just because it comes with 8.

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Related Articles

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki