Dell Sees Drop in Desktop and Mobile Revenue; Profit Cut Nearly in Half

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News Posted: Fri, Nov 16 2012 8:53 AM
Dell's fiscal 2013 third quarter revenue dipped to $13.7 billion, down 11 percent sequentially, the company announced this week. Battered by weak spending in the PC sector and a trend towards mobile handheld devices, Dell's profit was cut nearly in half, declining 47 percent to $475. Dell warned that it "sees the challenging global macro-economic environment continuing in the fourth quarter, which will continue to impact the company's results."

The world's third largest PC maker (behind HP and Lenovo) saw its Enterprise Solutions and Services revenue grow by 3 percent year-over-year to $4.8 billion, while it's server and networking revenue climbed 11 percent. Dell says it was the only top 3 server provider to experience positive unit growth in the quarter.

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"In a difficult global IT spending environment we saw solid proof points that demonstrate progress in our strategy," said Brian Gladden, Dell CFO. "A highlight has been the strong progress of our newly introduced servers, with our server and networking business up 11 percent. We’re also encouraged by early interest in our new Windows 8 touch portfolio and the opportunities it creates for our commercial and consumer businesses."

On the consumer side, Chief Financial Officer Brian Gladden said the market is getting better following the launch of Windows 8, though sales of devices running Microsoft's next generation operating system haven't really taken off, in part because of competition from Microsoft's own Surface device.
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