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Dell: Profits down, market share up

Flat Q4 ahead

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Dell yesterday posted its third quarter results, showing a net income of $429 million on the back of $7.47 billion revenue.

Looking year on year, its net income declined 36 per cent and revenue was down 10 per cent from $8.26 billion in the same period last year.

The sharper drop in profits was attributed to a price war, but this has enabled the company to grow its market share in almost every global region.

For the current quarter it is predicting only a slight increase in sales, indicating a weak Christmas forecast ahead, despite the arrival of Windows XP, which the industry hoped would pick up sales.

Earlier in the month, Dell predicted PC sales growth rates would remain in the high single digits for the next four to five years.

IDC shows the company taking an extra three percentage points of the worldwide market in the quarter as all the other top five PC makers lost market share.

It gained market share in PCs, notebooks and servers as its competitors battled their way through the quarter. Regionally, the company's strength grew quickest in Germany, China, Japan, although it showed gains in every major region. ®

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