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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.



By Electronista Staff
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  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999

    +17

    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.

  1. ZinkDifferent

    Fresh-Faced Recruit

    Joined: Jan 2005

    +4

    Damn...


    ...beat me to it... ;-)

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +2

    Are you kidding?

    Wall Street rewarded Dell by driving up shares nearly 10% if you count after hours. Investors believe that Dell is going to pick up lots of business from corporations when Windows 7 comes out. Earlier in the week there was worries Dell's shares would drop due to loss of profits, but I guess WS had already priced that into the shares. If WS thinks low and the company beats that, then investors go crazy with delight. I'm hopeful that Dell shares will help drive up Apple shares.

    Dell will never shut down. I'm sure the government or Microsoft would keep it afloat if that were going to happen.

    How many of you think that Apple shares might be lifted a measly 2% when it scores the China Unicom deal?

  1. joecab

    Fresh-Faced Recruit

    Joined: Apr 2004

    +4

    yes he was kidding

    iphone> I'm not sure if you realized that Paul was engaging in a little schadenfreude. He was quoting what Michael Dell famously said in 1997 about Apple at the time: "Id shut it down and give the money back to the shareholders."

    In the meantime, Apple passed Dell in value long ago. And when it happened, Steve Jobs released a memo commemorating the event, with little commentary. He was certainly a lot classier than Michael was.

  1. cebritt

    Fresh-Faced Recruit

    Joined: Mar 2000

    +3

    Boom

    I live in Austin so I've had a front row seat for the Michael Dell show. Michael has been "hoisted with his own petard" which means the bomb maker got blown up with his own bomb. He kept lowering the price of PCs to put his competitors out of business, in some cases selling below cost, and now he's stuck trying to make a profit selling $500 boxes or $300 netbooks.

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