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Dell Earnings Fall by 63 Percent, Waiting for Win 7

By - Source: Tom's Hardware US | B 24 comments

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?

Discuss
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  • 10 Hide
    falchard , May 29, 2009 10:14 PM
    I think its because Dell sucks. Crappy parts, crappy service, crappy specs. They probably are losing market to HP.
Other Comments
  • -4 Hide
    Anonymous , May 29, 2009 9:13 PM
    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.
  • 2 Hide
    maddogoo9 , May 29, 2009 9:24 PM
    hotdog1251whats a dell gaming pc.


    fixed

  • 0 Hide
    Tindytim , May 29, 2009 9:29 PM
    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).
  • 0 Hide
    chicagotechjunkie , May 29, 2009 9:38 PM
    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.
  • 2 Hide
    chripuck , May 29, 2009 9:39 PM
    hotdog1251im 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.
  • 4 Hide
    maddogoo9 , May 29, 2009 9:57 PM
    im going to say it *closes eyes*

    RC is better then xp in terms of EVERYTHING!
  • 1 Hide
    rpmrush , May 29, 2009 10:13 PM
    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 ; )
  • 10 Hide
    falchard , May 29, 2009 10:14 PM
    I think its because Dell sucks. Crappy parts, crappy service, crappy specs. They probably are losing market to HP.
  • 3 Hide
    cabose369 , May 29, 2009 11:28 PM
    falchardI 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...
  • 0 Hide
    tipoo , May 29, 2009 11:33 PM
    Stop waiting for Microsoft, Dell. Half their product lines are using outdated hardware, they need to refresh their lines more aggressively.
  • 7 Hide
    leafblower29 , May 29, 2009 11:37 PM
    They deserve it for ripping off their customers.
  • 1 Hide
    Gin Fushicho , May 30, 2009 1:30 AM
    I'm always waiting to see whats around the corner. and besides , DELL likes to rip people like me off anyway.
  • 1 Hide
    Raidur , May 30, 2009 1:39 AM
    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.
  • -7 Hide
    Raidur , May 30, 2009 1:42 AM
    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.
  • -1 Hide
    computabug , May 30, 2009 1:44 AM
    rpmrushDefinately 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.
  • 0 Hide
    teamhead , May 30, 2009 2:12 AM
    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.
  • -1 Hide
    cadder , May 30, 2009 2:15 AM
    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.
  • 2 Hide
    Robert17 , May 30, 2009 2:37 AM
    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.
  • 0 Hide
    Anonymous , May 30, 2009 2:46 AM
    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.
  • 0 Hide
    chris1685 , May 30, 2009 6:40 AM
    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.
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