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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

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RE: Windows 8 the savior ???
By B3an on 11/17/2012 3:25:54 PM , Rating: 4
XP was ****. Its a security risk and don't work with tons of new hardware. It even got many bad reviews on release. The ONLY reason people like it is because it was around for so long that they eventually got very used to it.

And this article is BS. Q3 results are for July, August and September. So this wont include Windows 8 sales.

RE: Windows 8 the savior ???
By bigboxes on 11/18/2012 1:25:52 AM , Rating: 3
XP was great for it's time. After SP2, you had a very stable product. Now, I know you are going to beat your chest some more for Win8, but only time will tell. In the meantime, don't be such a fanboi.

RE: Windows 8 the savior ???
By TakinYourPoints on 11/18/2012 5:05:26 PM , Rating: 1
B3an is a ridiculous MS fanboy, so its pretty funny to hear someone call him otherwise.

I'm surprised that he slams XP, but good on him for seeing reality. XP was a disaster from a security standpoint. Microsoft fixing those problems with Vista by adding Unix style user elevation of rights rather than the "every user is root/admin" style of XP (a disaster) did so much to fix the issue of malware on Windows.

RE: Windows 8 the savior ???
By rdhood on 11/19/2012 10:22:29 AM , Rating: 2
XP was great for it's time. After SP2, you had a very stable product.

That was my experience. Pre-XP was a BSOD peppered 5 years. It meant praying/playing with IRQs, unstable hardware and software. Post-XP/SP2 was mostly stable and headache free.

I did not go to Vista, but went straight to Windows 7. There was a time, several years ago, when XP vs. 7 was a competitive choice. But $90 for a 6-core processor + motherboard and $40 for 8GB of DDR3 memory fixed any qualms I had about going to a new operating system with ever so slightly worse performance than XP. I upgraded my three systems at home to Win7 for under $100. There is no legitimate reason to stay on XP anymore.

RE: Windows 8 the savior ???
By Cypherdude1 on 11/18/2012 6:23:13 AM , Rating: 3
XP was ****. Its a security risk and don't work with tons of new hardware.
I'm not sure what "security risks" you're talking about. M$ is still supporting XP SP3 with patches until April 2014. Also, if you connect a router and use Symantec Norton Internet Security 2013 or 360 2013 (both XP 32 bit only), you should not have any security holes.

As for hardware, it's difficult to gauge how much hardware no longer works with XP SP3 (I now use Win7 64).

RE: Windows 8 the savior ???
By martyrant on 11/18/2012 6:38:22 PM , Rating: 2
Did you really just suggest putting a symantec product on a computer?

To quote Roy from the I.T. Crowd, "Are you from the past?"

I'm sure corporate users will still be like "Backup Exec? bbqwtf???" that I say look outside your software circle.

RE: Windows 8 the savior ???
By StevoLincolnite on 11/19/2012 7:37:16 AM , Rating: 2
Try Nod32. It's efficient, unobtrusive and effective, all 3 things that Norton isn't.

RE: Windows 8 the savior ???
By TheJian on 11/18/2012 12:34:16 PM , Rating: 2
Name a piece of hardware that doesn't work with XP. Heck, if it's so easy to do so, name 10. :)

XP will have updates until 2014 as the OP stated. 32/64 both.

Enterprise my friend..LOL. Never heard of corp?

You're saying 50% of the businesses out there using it are complete idiots I guess? Whatever...I'm used to win7 but the file explorer is TERRIBLE. XP was far more usable. My mouse didn't jump down all the time either like it does on 2 pc's in my house both with different hardware. There are bugs they just won't fix and I'm not the only one with the issues. They don't even respond regarding this stuff on technet etc.

"Discovering files"...LOL. WHAT?
"calculating"...WHAT? FFS, just copy my damned files and shut up :) No rightclick-repair on network connections? WTF? Retarded. I could go on and on about win7 being a step backwards in many areas. But the Windows Explorer is the worst. XP was awesome in this.

RE: Windows 8 the savior ???
By JPForums on 11/19/2012 10:11:18 AM , Rating: 2
Name a piece of hardware that doesn't work with XP.
A whole slew of newer motherboards starting with the not so new 700 series (AMD) chipsets have at least one component that doesn't work with XP. Most of the time it is the audio card, though AHCI drivers for newer SATA controllers have also had issues. Some USB 3.0 chipsets are also unsupported. Quite a few newer wireless addon cards have issue. Clearly you haven't tried putting XP on a newer laptop as almost nothing works with many of them. Do I really need to get into printers/scanners.

The rest of your post I largely agree with.
Enterprise my friend.
Especially this.
XP will have updates until 2014
And this.

"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
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