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Dell warns of soft tech demand, job cuts

updated 02:30 pm EDT, Tue September 16, 2008

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
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Comments

  1. tvalleau

    Fresh-Faced Recruit

    Joined: Feb 2005

    +3

    Hey: Michael

    Sell it off and give the money to the stockholders.

  1. jameshays

    Fresh-Faced Recruit

    Joined: Mar 2003

    +2

    Blame Game

    It's always easier to blame the economy than to simply realize that they produce a product that fewer people desire.

    People are still spending money, and they are still spending money on tech items. The difference is that they don't spend it at Dell.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: Blame game

    Right... There's no IT spending downturn, which is where Dell gets most of its sales. Companies have tons of cash to throw on new computer equipment.

  1. Flying Meat

    Dedicated MacNNer

    Joined: Jan 2007

    0

    They just instituted

    a 4 year refresh cycle for desktops where I work. Down from the previous 3 year cycle.

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