Dell's Profits Fall
Dell, noted PC maker, gained its notoriety as the maker of affordable, customizable computers. However, the tech giant missed the industry shift toward smartphones, tablets and data center that store information in the cloud.
Financial earnings reported on Thursday, are a direct reflection of the omission of these popular options.
For Dell’s second quarter it reported a net income of $204 million, down a staggering 72 percent from the same quarter in 2012. Revenue was reported $14.5 billion, almost mirroring the revenue from 2012, but better than the $14.18 billion Wall Street had expected, according to a survey of analysts by Thomson Reuters.
Dell’s net income was 25 cents a share which was a penny higher than expectations, according to Reuters.
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“In a challenging environment, we remain committed to our strategy and our customers, and we’re encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our Enterprise Solutions, Services and Software businesses,” Brian Gladden, Dell’s chief financial officer, said in a statement.
The slow sales of personal computers mirror Dell’s dwindling income. Many people are switching over to tablet computers and to keep sales up Dell slashed the prices of many of its products sacrificing profit margins.
Dell reported its earnings among a controversial proposal from founder Michael Dell to take the tech giant private. He wants to refocus the company on cloud computing by selling components like networking hardware, servers, storage and software, without Wall Street pressures.
CB Insights: US Insurtechs Compete In A Now Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.