Dell's Profits Fall

By Bizclik Editor
Share

The August edition of the Business Review USA is now live!

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.

Read related content:

“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.

Share

Featured Articles

How Should Corporations Approach Board Diversity?

Having a more diverse board is proven to enhance your organisation’s performance. But assembling a diverse board should be more than a box ticking exercise

These CEOs Increased Their Wealth by US$64bn in Just One Day

American share prices soared on Wednesday after Trump won the US election, putting billions into the pockets of the world’s biggest tech companies

Why Nissan CEO Makoto Uchida Is Halving His Salary

Nissan CEO takes 50% pay cut as car manufacturer unveils radical cost-cutting plan, including slashing 9,000 jobs worldwide

Who Will Take Over From Jamie Dimon as CEO of JPMorganChase?

Corporate Finance

Over Half of US CEOs Back Trump to Boost Global Economy

Leadership & Strategy

Why the Cloud is Murky for Microsoft CEO Satya Nadella

Technology & AI