Dell quarterly profit dives 23 percent from last year
updated 11:50 pm EDT, Thu August 27, 2009
Dell Q2 profit decreases
Dell's quarterly profit decreased 23 percent, according to the Wall Street Journal. The decline is likely due to the depressed corporate spending and the lower price of PCs caused by the current economic downturn. This is the forth consecutive quarter in which the computer maker posted a drop in profit when compared to the previous year's amounts.
The company posted an earnings of $472 million for its second quarter -- down from $616 million last year. Revenue was also significantly lower at $12.76 billion, a decrease of 22 percent.
Dell's chief financial officer, Brian Gladden, said he expects "some pickup in the second half" of the year and is optimistic that consumers who have delayed purchasing computers will start buying again once Windows 7 is released by Microsoft later this year.
Since 2007, Dell has tried to extend its operations to retail outlets such as Best Buy in an attempt to spur sales. Prior to that time, Dell had only sold the computers directly to customers via its website.
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If I were...
If I were the CEO of Dell, I would sell all the shares, give the money to the share holders and shut down the joint.