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 TakinYourPoints on 11/18/2012 9:30:30 PM , Rating: 2
Low end options don't really concern me. Yeah, its cool, but the low end isn't my thing. My PC is a powerhouse, that doesn't mean that I brag about the Windows marketshare based on the fact that its mainly on $400 econoboxes.

Bragging about Android's marketshare based on how many low end devices it is on is weird to me. It is like bragging about how popular McDonald's is. Who cares? When Android has the majority of the smartphone market but is still a lower portion than iOS of web traffic, app downloads, and mobile ad revenue, all it tells me is that Android is mainly on devices that are barely better than a flip phone. And it is, its mostly on the trash no-contract phones you get on Boost Mobile or poor countries.

So if Android is on the bulk of low end devices, um, good for you I guess? I'll take the best of the high end myself, thanks.

As for options, if being on the iPhone "limits" me to the fastest hardware with the best battery in its size class and the best apps, well darn it, guess those are limitations I'll have to live with.

RE: Some advice.........
By retrospooty on 11/18/2012 11:27:20 PM , Rating: 2
Whatever floats your best man. You buy the best phone for you and let others do the same. I totally disagree with the root of your logic but we will have to agree to disagree. With that said we should easily agree that I am right and you are wrong. LOL

RE: Some advice.........
By TakinYourPoints on 11/19/2012 1:46:36 AM , Rating: 2
I have always said that if someone wants bigger screens, keyboards, SD cards, tinkering/rooting their OS, sideloading apps, or cheaper low end devices, that those options are out there with Android and that people should buy them. Hell, I've advocated Windows Phone long before it was "ok" to do so. I think it has many of its own benefits, namely UI and huge potential with apps due to its SDK and programming languages. If you value the best hardware with the highest quality apps and the best centralized OS/vendor support, then iOS devices are generally the way to go.

Its all about pros and cons and tradeoffs.

I've always spoken in tradeoffs, a far cry from the one-dimensional "hurr durr Android rules Apple drools" circlejerk that goes around here.

PS - LOL :)

RE: Some advice.........
By JPForums on 11/19/2012 9:43:02 AM , Rating: 2
When Android has the majority of the smartphone market but is still a lower portion than iOS of web traffic, app downloads, and mobile ad revenue, all it tells me is that Android is mainly on devices that are barely better than a flip phone.

An alternate scenario for your consideration:
Android is indeed on highend phones, perhaps breaking roughly even with Apple on the high end. People who buy into highend Android are (in general) power users that may download fewer apps from the marketplace because they can get them elsewhere ... without the ads. Frankly, I wouldn't brag about iOS having more ad revenue. It just means you are getting bombarded by more adds. Until you tell me the source of iOS vs android web traffic numbers I can only speculate that they can't necessarily properly identify the preponderance of unique web browsers Android has. (Particularly if they default to the non-mobile versions of the webpage with their monstrous sized phones.) In conclusion, Apple has done a wonderful job of monetizing your purchase by making sure that any apps you buy come from them and you have no (sanctioned) way to subvert a potentially increasing number of advertisements coming directly to your phone.

Or you could be absolutely correct and nobody buys high end android. Given the number of high-end android phones available, I tend to think the answer lies somewhere in between.

Apple does hands down the best job with power efficiency. It seems to be true across multiple product lines. I'm sure there is a trade off, but thus far they've done a fine job keeping it hidden. The screen res goes back and forth, but Apple currently has a fair lead. Further, Apple has always made sure that the screen is at least good, even if they weren't the best at times. The A-series SoCs are impressive SoCs, easily among the best. However, despite being the "uncontested" leader in the GPU space, there are games on the market with effects that can only be used on the (relatively) weak nVidia SoCs. I have to wonder if the GPU power is focused in the wrong area going forward. A certain industry leading PC graphics card company no longer in existence kept blindly pushing things like fill rates while ignoring texture and lighting (or vertex/pixel shaders). Still at the moment the A-series processors are pretty dominant.

Android is far more customizable than iOS. It also legitimately scales the spectrum from small devices to large ones and from low end devices to high end. Though its biggest strength (for those that want it) is probably the fact that Apple/Google doesn't get to dictate to Android users what Apps they have access to or what program is required to get data/media on and off the device.

As far as apps go, I've seen the spectrum from golden calf to steaming pile on all platforms. Even first party apps are occasionally lemons. The only real distinguishing feature between Android and iOS apps is perhaps that, with android, you have to make sure you trust the author of applications that you get outside of the market place. I consider this as a responsibility that comes with the freedom.

Interestingly, the mantra of just works apparently goes to Windows Phone. They don't have the same number of apps, though they apparently have a fair amount. They can't match the hardware (err, haven't checked out the latest). They try to strike a proper balance between Apples total lock down and Androids free for all, but come off as less than convincing as they lean pretty heavily in Apples direction. However, despite the low end hardware, the experience is smooth. More importantly, I have yet to crash a Windows Phone. A feat I've accomplished within a weeks normal use on an iPhone 3G and an iPhone 4 and within a few hours use of an HTC Evo 4G and a Samsung Galaxy S3. That said, if you learn the quirks, it is largely a non issue.

"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
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