Dell second quarter profit by 28 percent cited dissatisfaction with the price war has hurt revenue

REVIEW Dell Thursday posted second-quarter earnings, while profit rose 28% last year, but because of slow sales growth, lead to an unhappy investor.

NEW YORK August 12 News (Dai Yan compile search), according to foreign reports, Dell Thursday posted second-quarter earnings, while profit rose 28% last year, but because of slow sales growth, lead to an unhappy investor.

Dell said the weak federal government orders and measures affecting the sales of large-scale discount. Second-quarter sales of 13.4 billion U.S. dollars, grew by just 15%. Second-quarter earnings as high as 10 million (41 cents per share), compared with last year's second quarter of 800 million U.S. dollars increased by 200 million U.S. dollars. However, Dell's earnings included a recovery of profits earned overseas, tax cuts, otherwise the profit of 38 cents per share, and Wall Street's forecast of the same.

Dell is the earnings after the market closed, and the company's shares had earlier closed at 39.58 U.S. dollars, in extended trading, shares fell amid investor disappointment 8%, fell to 36.45 U.S. dollars.

For investors accused the sales growth was too slow, Dell executives said the acceptance, saying the reason is to provide consumers with too many benefits. CEO Kevin Rollins said: "The company is in little change in the competitive environment, some of which measures price war there mistakes, we did look at the sales strategy on a number of overly aggressive."

Recently, Dell has repeatedly published in the advertisement is by inviting low to entice consumers through the website or toll-free number to order. If the customer an additional few hundred dollars, but also can get more memory, faster chipsets, or liquid crystal displays and other upgrades. However, the effect of these strategies than in the past declined. In the second quarter, Dell's average revenue per PC of 1610 U.S. dollars from last year fell to 1,480 U.S. dollars, while the first quarter of this year, this figure is 1520 U.S. dollars.

In another development, Dell expects third quarter revenue will reach 14.1 to 14.5 billion U.S. dollars, earnings will be 29 cents to 41 cents per share.






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