‘Post-PC’ Victim Dell Profit Haemorrhage 72%
The PC major announced q2 profits slid a massive 72% to $204m as it fails to keep up in the mobile race.
Dell said Q2 sales were “flat year over year” at $14.5 billion, although its enterprise division did grow.
Brian Gladden, Dell CFO, admitted a “challenging environment,” but said “we remain committed to our strategy and our customers, and we’re encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our Enterprise Solutions.”
Computing sales fell 5% to $9.1bn, with mobile PC’s down 10 percent, in stark contrast to Samsung, Apple who profits are driven by mobile sales. Desktops rose 1 percent however, income from computing slumped a massive 71 percent.
Dell second quarter fiscal 2014 results did have some good news. Enterprise and Software sales rose 9% to $5.8 bn , although included the benefit of the acquisition of Quest.
To quell investor fears, the Texas giant, who may be about to go private, claimed to be the only vendor among the top five worldwide to increase PC shipments in the past two quarters.
Dell did not providing an outlook, given its privatisation plans although large investors including ‘activist’ Carl Icahn, oppose Michael Dell’s plans. Shares fell slightly to US$13.62.