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

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RE: Some advice.........
By vXv on 11/18/2012 6:01:46 AM , Rating: 2
I still have an 3 year old iPhone 3GS (I don't buy a new phone every few months) .. but now is time to replace it and looking at the available options I see no reason why I should go with a newer iPhone. I will probably go with the Nexus 4 it offers a way better price / performance ratio then any other phone on the market ... Google / LG just has to have some in stock ...

RE: Some advice.........
By nikon133 on 11/18/2012 4:30:28 PM , Rating: 2
Same here.

My 3Gs is running iOS5 (have skipped on iOS6 because maps are really quite useless here in New Zealand). If I get iPhone 5, I'll get faster, slimmer device with bigger/higher res screen... but I will be using it exactly the same way I've been using my 3Gs since mid 2009. No significant changes, no improvements, no new ideas. For my usage scenario, notifications were probably the only "innovation" that happened since iOS3. Folders, maybe. Yay for folders.

I'm still undecided between high end WP8 and high end Android, but as it is, iPhone it is not going to be.

RE: Some advice.........
By TakinYourPoints on 11/18/2012 4:47:25 PM , Rating: 2
I don't understand how going to a Nexus 4, a device that is second-tier even by Android device standards, is an improvement. It is cheap, sure, and hopefully the OS is kept up to date unlike most Android hardware out there, but that's pretty much it.

If you can spend the extra coin then there are certainly better devices out there, the iPhone 5 being the fastest with the best software. If you want to mess around with something different then I understand, even if its a step back.

RE: Some advice.........
By retrospooty on 11/18/2012 7:50:28 PM , Rating: 2
Clearly you don't understand... see Nikon's post for some insight. IOS is stagnant.

RE: Some advice.........
By martyrant on 11/18/2012 9:08:13 PM , Rating: 2
You should stop feeding the troll, he is obviously an iDiot in denIal.

RE: Some advice.........
By TakinYourPoints on 11/18/2012 9:15:32 PM , Rating: 2
I understand perfectly.

Speed and functionality via apps mean more to me than fiddling with home screens. Android isn't even the best in that regard, WP is with its Live Tiles.

If you want a change of pace or want to fiddle, then I guess Android is cool. I like actually using my mobile devices, so I'll stick with iOS until something better comes along.

RE: Some advice.........
By vXv on 11/20/2012 7:30:16 AM , Rating: 2
Well lets see what I use my iPhone for:

1) Phone calls
2) Texting
3) Reading mails
4) Navigation
5) Web browsing
6) Alarm
7) Kill time playing causal games
8) Sometimes IM / Skype

The Nexus 4 should do all of them just fine and the larger screen is better for 4, 5 and probably 7, while cost the half of the other options iPhone5 or Samsung S3.

It does not have LTE but LTE does not really exist in this country.

And pretty much any option is not a step back from a 3GS (and actually Android 4+ does not look like a step back to me) ;)

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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