The increasing popularity of tablet computers and smartphones coupled with the weak economy makes life difficult for PC maker Dell. In the second fiscal quarter (to August 3) sales fell by eight percent to 14.5 billion dollars (11.6 billion euros). The profit slumped by 18 percent to $ 732 million.
CFO Brian Gladden spoke on Tuesday about a challenging PC business. Both desktops and notebooks sold worse than in the same period last year. Dell felt the biggest problems with private customers - here, the business fell by 22 percent. The public sector was also noticeably backward.
The only bright spots were the service business for corporate customers built up with acquisitions and the high-performance computing and storage systems. Here, Dell benefits from so-called cloud computing, where programs and data are stored on central mainframes on the Internet or in company networks. For Enterprise Solutions, Dell has appointed former HP manager Marius Haas as its new president.spoods.de
For the foreseeable future, growth will not be able to offset declines in PC sales. Dell expects sales in the current quarter to decline by two to five percent compared to the previous quarter. The group then lowered its earnings forecast by one-fifth.
Dell is one of the manufacturers who are particularly suffering from the upheavals towards smaller, mobile devices. Previously, the group was once number two PC manufacturer behind Hewlett-Packard. Meanwhile, according to data from the market research firm Gartner, Dell slipped to fourth behind Lenovo and Acer.
The stockbrokers were disappointed. After the stock exchange fell the share by four percent. Hewlett-Packard will present its interim results this Wednesday. The market leader reacts to the new situation with radical job cuts. It is estimated that 27, 000 employees will have to leave the company by autumn 2014. That's more than every twelfth HP employee. (Dpa / tc)