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ComputerWire: IT Industry Intelligence

The markets were presented with a rare spectacle yesterday, when a tech company warned that its financial results will be better than expected.

Dell Computer Corp announced yesterday afternoon that both sales and earnings for its second quarter will be better than it predicted in May. However, the announcement could still spell trouble for rival PC vendors.

Round Rock, Texas-based Dell had been counting on sales of $8.2bn, with earnings per share of $0.18 for the quarter ending August 2. However, it now expects sales to be $8.3bn, up 9% on last year, with earnings of $0.19 per share.

But while Dell may be seeing increased sales, that does not translate into equally good new for its PC rivals. The vendor said that it believed it was continuing to gain share "in the midst of weak overall demand." Throughout the PC downturn, which has now lasted nearly two years, Dell has continued to gain share, causing further pain for rivals already facing weak demand.

The vendor said its strength in the market was broadly based, but particularly highlighted the consumer, education and government businesses in the US.

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