Dell profits fall 54% on quarter, slim enterprise budgets to blame

By Justin Mann on November 19, 2009, 4:33 PM
Computer giant Dell took a huge hit in profit for the previous quarter, following a slump in sales. Overall, Dell says their profit has been cut by more than half, falling 54% below the previous quarter. The largest losses have primarily come from enterprise and business customers, which represent the bulk of Dell's profitable sales.

Companies simply have lower budgets for new technology, and that has affected Dell's loss more than increased competition from the market leaders, HP and Acer. The bad news also set Dell stocks back a bit, falling about 19 cents a share, though they are still doing better than they were in the first quarter of this year. While they may not be a bulk of the issue, Acer has been putting incredible pressure on both them and HP, so it's understandable that Dell is struggling.

Dell does have a lot on the horizon though, introducing several new products this year, such as the Inspiron Zino HD nettop and the ultra-thin Adamo XPS. Still, they will have to work harder than that to recover ground lost to Acer and HP.

User Comments: 1

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Guest said:

As a UK customer of Dell it would do them no harm to look at their customer service systems. Their Indian call centres are absolutely awful and the offices in the UK make quite sure that no persons can be contacted to be held to account. I will not buy Dell again even though their computers are good. Dell seem to have forgotten that customers should be King!

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