Dell suffers catastrophic profit fall

Hardware firm Dell is still waiting for a bottom in the PC market, indicating that things are still thorns, thorns rather than roses, roses.

The firm’s latest quarterly results showed a 63 percent drop in profit, and a 23 percent fall in revenues.

It reported that there was no improvement in demand across the board, with sales of notebooks, desktops and servers all sliding.

Dell turned in profits of $290 million for the quarter, compared to $784 million in the same period a year back. That’s on sales of $12.34 billion, compared to sales of $16.08 billion a year back.

Although Dell has attempted to re-engineer itself as a consumer orientated company, the world economic meltdown has stymied such plans. It sold more PCs to consumers but its revenues dropped to $2.8 billion, a 16 percent fall from last year.

Nor is its services division showing signs of buoyancy. That dropped by eight percent, quarter on quarter, year on year.

Notebook sales fell by 20 percent, year on year. Desktop sales fell 34 percent, year on year. Corporate server sales fell 31 percent, quarter on quarter, year on year.

Earlier this week, figures from IDC showed that the lucrative X86 server market is flagging. Both Intel and AMD have warned that sales to corporations and large organizations remain static, as chief financial officers fail to open their wallets for fear things will get worse. Hewlett Packard last week was gloomy about PC sales, too.