Dell Warns of Soft Demand

Dell on Tuesday warned that its already cautious forecast for its summer quarter would likely have to be lowered further still. The company points directly to poor economic conditions affecting its sales to all users and particularly warns of low IT spending in the US, which has been hardest-hit by the current financial crisis. No specific estimates have been given regarding the period, which ends in October.

The Texas company points to PC shipments that are above-average for the industry as a sign of its health but also warns that it will have to take significant measures to remain healthy. These are said to include typical strategic acquisitions but should also involve higher costs and job cuts; specific plans haven't been revealed.

Dell's notice comes just as NPD Group sales data suggests that only some computer builders have avoided facing the brunt of the weakening economy; Apple is currently faring relatively well and is seeing only a slight decline in growth compared to the same period last year.

By Electronista Staff