Dell Forecast Misses Estimates as PC Sales Continue Slump |
| Bloomberg - Aug 21, 2012 |
Dell Inc. forecast third-quarter revenue (DELL) that missed analysts’ estimates as its personal computer business dwindles amid a slow global economic recovery and an influx of tablet computers that’s eaten into sales.
Revenue in the fiscal third quarter ending in October will decline 2 percent to 5 percent from the prior three-month period, the Round Rock, Texas company said in a statement. That is the equivalent of $13.8 billion to $14.2 billion in sales, less than the $14.9 billion average analyst estimate, according to data compiled by Bloomberg.
Chief Executive Officer Michael Dell’s strategy of using acquisitions to add software, storage and networking equipment has been slow to offset declining sales of desktops and laptops, which account for more than half of revenue. Consumers and businesses increasingly favor tablet computers such as Apple Inc.’s iPad over traditional machines.
“In PCs, price pressure continues, and the iPad isn’t helping,” said Shaw Wu, an analyst at Sterne Agee & Leach in San Francisco, who recommends owning shares. “An entry-level iPad is $399, and on many sites you can find it as low as $360. For a lot of people that’s a viable alternative to the PC.”
Read Full Article from Bloomberg
- Posted: 2012-08-21 16:46:34
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