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Dell Earnings Fall by 63 Percent, Waiting for Win 7

by - source: Tom's Hardware US

Dell's looking for a sign.

We’re well aware that we’re in a recession and that the tech sector is going through hard times. Dell announced to investors yesterday that its quarterly earnings are down 63 percent as compared to last year. Ouch.

Much of the decline isn’t due to consumers hanging onto their wallets, however, as it’s businesses that are deferring spending. Large Enterprise revenue decreased 31 percent from a year ago, as many large IT departments have shrunken budgets. Revenue from small and medium businesses saw nearly the same decline at 30 percent decrease from a year ago. Revenue from the public sector decreased by 11 percent decrease, thanks to a growth in larger government accounts.

Consumer revenue was down 16 percent, but interestingly, shipments increased 12 percent over last year. It seems that even in times of a cash crunch, consumers still want their computers, albeit cheaper ones.

“We’re continuing to transform the company on the cost side and delivering strong cash flow,” said Michael Dell, chairman and chief executive officer. “Re-establishing cost leadership and having flexibility to invest in our business will position us well as IT spending improves.

“Signals about the demand environment are mixed, but we’re preparing for what we believe will be a powerful replacement cycle, with virtualization and managed services playing larger roles in what customers want and Dell provides,” Dell added.

The replacement cycle that Dell is referring to is likely the release of Windows 7 and a new generation of chips from Intel based off of the Nehalem architecture. Are you holding off any upgrades in anticipation of what’s just around the corner?

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Anonymous 05/29/2009 11:13 PM
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maddogoo9 05/29/2009 11:24 PM
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-2+

hotdog1251 :
whats a dell gaming pc.



fixed

Tindytim 05/29/2009 11:29 PM
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Nope, just saving up some cash for a new rig. I'll just buy a copy of Windows 7 and install it if it isn't out by the time I build (which is probably won't be).

chicagotechjunkie 05/29/2009 11:38 PM
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I am waiting for sure. Although for me it's more saving up my cash for a purchase. But if I get the 1500 or so I want to drop on my next gaming rig saved up before win 7, I'll probably wait. It will depend on the cost of 7 though, as I want to spend most of my money on hardware if possible.

chripuck 05/29/2009 11:39 PM
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hotdog1251 :
im waiting for windows 7 before i buy a new Core i7 gaming pc. Im also waiting for the new intel atom pine view cpu and windows 7 before i buy a 10" netbook.



You can download the RC and buy your comp now... It's pretty darn solid. Been running it along with the Beta for two + months now.

maddogoo9 05/29/2009 11:57 PM
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-4+

im going to say it *closes eyes*

RC is better then xp in terms of EVERYTHING!

rpmrush 05/30/2009 12:13 PM
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Definately waiting. I was so close to pulling the trigger on a Core i7 rig, til I heard rumor of the 6 and 8 core 32nm intels hitting next year. I can wait. My E6750 is still plenty at 3.6 Ghz. The waiting game is so hard though ; )

falchard 05/30/2009 12:14 PM
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I think its because Dell sucks. Crappy parts, crappy service, crappy specs. They probably are losing market to HP.

cabose369 05/30/2009 1:28 AM
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falchard :
I think its because Dell sucks. Crappy parts, crappy service, crappy specs. They probably are losing market to HP.



They are... and to Acer as well...

tipoo 05/30/2009 1:33 AM
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Stop waiting for Microsoft, Dell. Half their product lines are using outdated hardware, they need to refresh their lines more aggressively.

leafblower29 05/30/2009 1:37 AM
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-7+

They deserve it for ripping off their customers.

Gin Fushicho 05/30/2009 3:30 AM
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-1+

I'm always waiting to see whats around the corner. and besides , DELL likes to rip people like me off anyway.

Raidur 05/30/2009 3:39 AM
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Dell probably isn't ripping people off as hard as it used to, and yeah people are starting to open their eyes to the competition.

Raidur 05/30/2009 3:42 AM
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computabug 05/30/2009 3:44 AM
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rpmrush :
Definately waiting. I was so close to pulling the trigger on a Core i7 rig, til I heard rumor of the 6 and 8 core 32nm intels hitting next year. I can wait. My E6750 is still plenty at 3.6 Ghz. The waiting game is so hard though ; )



Harder for me (as a 15 year old student). Dad bought a P4 3.0g JUST before PCIe DDR2 and Core 2 Duo's came out >> and now, it's not enough to go around so I've got to buy a temporary solution while waiting for ddr3 to cheapen (:)), PCIe3, SATA3 to get popular, USB3, and Sandy/Ivy Bridge, although it'll probably be Sandy Bridge when Ivy gets released so I can enjoy a price fall :)

So yes, I'm getting some waaaaay outdated (or very soon to be out-dated) lga775, unless NCIX throws up another Athlon 7750 combo deal soon.

teamhead 05/30/2009 4:12 AM
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I have 3 dell laptops and 1 gaming desktop and was always happy with them until I had 1 really bad service experience with a faulty screen on my XSP Gen 2 laptop. There were recalls on certain models of the screen and mine just happened to not be 1 of those models even though the symptoms were the same. Really ticked me off after hours of escalating it on the phone and getting no where. Its too bad because I always got really good deals on the refurbs with coupons.

cadder 05/30/2009 4:15 AM
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I bought 2 laptops and 1 desktop in December, and built myself a new desktop a few months later. I ordered a new desktop for my company last month. One of these laptops was Dell, I chose other brands/suppliers for the other machines for a variety of reasons. I may have to buy my daughter a new laptop before school starts again in the fall, and it would likely be a Dell. So I'm not delaying- I'm buying when the need arises.

Robert17 05/30/2009 4:37 AM
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Waiting. I tend to anyway. Usually best to let first adopters be the guinea pigs; wind up spending my cash on a more stable platform. By then next gen is out and I can pick up parts/apps at a fraction of the "new improved" price. Sorry, but I guess I'm just not the guy to turn to for the R&D funding.

jescott418 05/30/2009 4:46 AM
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Dell keeps putting nice pretty cases around crappy hardware. I bought a Lenovo for half what I bought a Studio Laptop for and have nothing but issues with the Studio. It's Vista its the hardware! I run Vista on some real cheap barebones desktops and have no problems. No Dell and its value added software and hardware must be the problem.

chris1685 05/30/2009 8:40 AM
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I just upgraded to vista from xp the day sp2 came out for vista so I wont be going with win 7 anytime soon untill sp1 comes out for it,or vista ends support...no need to by a new computer because the one I have is doing me just fine.

Anonymous 05/30/2009 10:16 PM
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I was going to buy a decked out Dell laptop but they wouldnt give me one with XP so ... no business for Dell. Keep your vista and watch profits fall!!!

dextermat 05/31/2009 6:06 AM
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-1+

Dell used to build good computers (in the Pentium 3 era)
But the laptops are just piece of junk; Whether you pay 600$ or 3200 $.
I strongly advise not to buy, any others like HP, Gateway.
For Dell, It's the new channel their in and their new model, it just getting flush down the drain :\

manicmalki 06/01/2009 8:27 PM
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Dell has put out some real dogs like the adamo and there software expecaly there bios leave something to be desired. They have also engaged is questionable business paractices like the Your Tech Team north american based support. Use to be hosted out of the good old USA not it is mostly based in Canadia. There systems are made from the cheaptest most limiting parts they an get and there sales people commonly do things like sell 8 gigs of ram for xp 32bit and pcie vid cards on 300 watt PSU. No wonder there in trouble. (sorry bitterly unemployed)

mr_tuel 06/02/2009 1:18 AM
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I know that Dell makes an i7 system that only has 4 gigs (!) of ddr3(It would be better off with 3 gigs.) So they have purposefully built an under performing i7 system to save $20 on the cost. It has 6 ram slots, but only 2 are populated. stupid stupid dell. Similarly, gateway has a similar i7 system, but with 3 gigs, and it performs better! Only costs an average of about $100 more in retail.

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