Dell Profits Decline as PC Sales Plummet

Jasmina Lozevska May 18, 2013 0
Dell Profits Decline as PC Sales Plummet

I always thought that Dell is right here on the top with its PC sales but the numbers are showing otherwise. This company is struggling to keep its momentum that it had earlier. Maybe this is some kind of a clue that the world is heading towards the tablet era or maybe Dell hasn’t anything up in its sleeve to offer. Either way, the newest earnings results, which happened 5 days earlier didn’t show much of revenue for the first quarter of this year.

The third overall company in the PC market is continuously falling on the PC market itself and that is not something nice to hear. This company has noticed revenue of $372 million of $13.5 billion and calculated in share price that is 21 cents per share. Maybe this doesn’t look so bad but the numbers that were expected are showing a big loss for this company. Dell was expected to calculate an income of $607.1 million as revenue money which was calculated to be 35 cents a share. You can notice the difference by yourself and conclude that things aren’t going so well for this manufacturer.

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This came as a no big surprise for some because the revenue of the previous quarters wasn’t so great either. Brian Gladden, a CFO at the company, is staying positive with his reports because said that they are still feeling positive in the company and some great overall strategy will do the trick and the company will be right back where it belongs.

If we take a look at this number from up close, we could notice that the Group for Enterprise Solutions has made $3.1 billion revenue which is noticeable 10% year by year. But that is not the problem that we see, the thing is, from their stand point this is great and added to this the revenue for the server and networking has increased by 16% but the revenue for the storage has decreased by 10%. And it’s not something that big company like Dell would want to see.

The bigger difference is between the services and business and app process. Dell services grew only 2% but the processes have noticed a loss of 15%. And we don’t even want to share the details of the biggest loss of the software’s unit. At the end of the day, Dell has earned $13.2 billion in cash and in this number the investments are included. According to the company the unit will get back on track but the process will last 2 years minimum.

It’s always sad to see some company that you have known for your whole life making a slight fall. But, Dell has some powerful strategy and unit to provide fast returning of the lost. Maybe it will take some time but there is no doubt that it will remain on its third spot. Maybe in the future we will see some other things from Dell like focusing only on making their tablets best in the business. In today’s technology market everything is possible.

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