Dell's Sales Miss Estimates as Company Sidesteps Low-End PCs |
| BusinessWeek - Nov 16, 2011 |
Dell Inc., the third-largest maker of personal computers, missed third-quarter revenue estimates after walking away from $2 billion in potential PC sales to focus on more profitable technology.
The Round Rock, Texas-based company gave up billions in “low-value” PC opportunities because it wanted to preserve margins, Vice Chairman Jeff Clarke told analysts on a conference call yesterday. That contributed to revenue declining to $15.37 billion in the period, from $15.39 billion a year earlier. Analysts had projected $15.7 billion.
While Dell beat profit estimates for the third quarter, the company told investors to expect more slow sales growth for the rest of the year. The company is coping with a hard-drive shortage triggered by flooding in Thailand, and it faces more price competition with PC market leader Hewlett-Packard Co. Dell is increasingly opting to sidestep the low end of the market in favor of servers, services and networking equipment.
Read Full Article from BusinessWeek
- Posted: 2011-11-16 11:56:44
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