Feeds

Dell Q3 already in ruin – analyst

Danger, Kevin Rollins!

Choosing a cloud hosting partner with confidence

Dell's moves to lower prices, hire more understandable customer service reps and stop product fires do not appear to be helping its immediate fortunes.

Think Equity analyst Eric Ross warned today that channel checks in Asia show Dell's PC sales "declining rapidly below expectations". Dell will likely struggle to correct the sales slip before the end of its third quarter, according to the analyst, and now faces a "near-impossible" situation. The hardware maker may well need to issue yet another mid-quarter revenue warning - a process that's becoming a tradition in Round Rock.

Dell must continue to lower prices and eat into profits if it hopes to slow market share losses. "Competitors are driving gains based on price, and the Asian market is largely a price-driven market," Ross said.

Making matters worse, Dell could see Intel chop its co-marketing budget from hundreds of millions of dollars down to nothing, according to the analyst.

Intel could be reacting to Dell's recent adoption of AMD's server and desktop processors. Dell had been the only major hardware maker to resist AMD's call until buckling this summer.

Dell's management has been doing everything it can think of to try and revive the company's fortunes. Sadly for investors, "everything" doesn't include all that much. Dell has moved to cut prices, eliminate rebates and hire more customer service representatives, thinking this will restore its image as a decent, low-cost computer supplier.

In the meantime, exploding laptops and ongoing customer support horror stories undermine Dell's "we're better now" pitch. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.