Profits for Dell Down !!
Due to the recession, it is no surprise that amongst many other companies ,Dell the computer manufacturer declared that its profits were down compared to last year. Thankfully they were not losses like Sony and Palm.
Dell reported a a 63% drop in profit but still managed a net income of $290 million, compared to $794 million during the same quarter last year. One major reason for the decline is that the business and government sector makes up three quarters of its business. Due to the recession and also the possibility of Windows 7 coming up, many business and government sectors are not buying computers now..
Another reason is also because of its competitor Acer. Acer is able to sell their computers for much less than Dell in consumer sales. Though for Dell the consumer market is secondary , but it is important if Dell wants to continue the way it is.
But Dell is optimistic about the year, since the release of Windows 7 might end up increase the sales of the computers as many people would like to upgrade to the new OS.
Lets hope Dell is right!:)
