Skip to main content

Dell Earnings Fall by 63 Percent, Waiting for Win 7

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?

  • 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.
    Reply
  • maddogoo9
    hotdog1251whats a dell gaming pc.
    fixed

    Reply
  • Tindytim
    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).
    Reply
  • chicagotechjunkie
    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.
    Reply
  • chripuck
    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.
    Reply
  • maddogoo9
    im going to say it *closes eyes*

    RC is better then xp in terms of EVERYTHING!
    Reply
  • 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 ; )
    Reply
  • falchard
    I think its because Dell sucks. Crappy parts, crappy service, crappy specs. They probably are losing market to HP.
    Reply
  • cabose369
    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...
    Reply
  • tipoo
    Stop waiting for Microsoft, Dell. Half their product lines are using outdated hardware, they need to refresh their lines more aggressively.
    Reply