Dell Earnings Disappoint as PC Sales, Windows 8 Fail to Save It
November 16, 2012 7:19 PM
comment(s) - last by
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.”
, 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,
, 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.
This article is over a month old, voting and posting comments is disabled
OMG this article is such BS
11/19/2012 5:25:28 PM
Wow! DailyTech I visit your site every day multiple times. You don't need to resort to sensationalist BS to get people to visit. Did you actually just report that an OS that was NOT RELEASED failed to have impact on Dell's financials? Windows 8 is 3 weeks old. Poor form.
And the people mentioning XP in the year 2012 as "THE OS" to hold on to. You simply sound ridiculous at this point. Your like my kids grandfather. He wont change his flip phone for a smart phone because it does "everything" he needs. For the love of all that is good get Windows 7 or stick Linux on your full tower, CRT based, 8XCDRom machine. I would say get Windows 8 but that lack of start menu would probably cause your head to explode.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
Microsoft Surface Review RoundUp
October 24, 2012, 7:00 AM
Dell's Last Hope? Company Turns to Windows 8 Amid Plunging Sales
August 22, 2012, 3:00 PM
Dell's Fiscal 2013 Earnings Disappoint
May 23, 2012, 10:00 AM
Report: Windows Phone, Windows RT May be Offered Free to OEMs
December 12, 2013, 2:31 PM
New Policies for Cell Phone Unlocking to Arrive "Soon"
December 12, 2013, 12:43 PM
Facebook to Add Auto-Play Video to NewsFeed for All Mobile Users
December 12, 2013, 9:35 AM
AT&T CEO Says Carriers Can No Longer Foot the Bill for High-End, Subsidized Smartphones
December 11, 2013, 10:55 AM
IPotty and iPad Tot Seat Ignite Controversy: Brilliant or "Destructive"?
December 10, 2013, 6:22 PM
Quick Note: Sleek White Second-Gen Nexus 7 Goes on Sale for $269
December 10, 2013, 4:55 PM
Most Popular Articles
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Report: Windows 8.2 Revives Start Menu, Runs Metro Apps in Desktop Mode
December 10, 2013, 2:56 PM
U.S. Navy Fires "XFC" Drone from Underwater Submarine
December 6, 2013, 2:35 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information