Skip to main content

Dell profits show sharp rise

dellEven if economies around the world are experiencing hard times, Dell doesn’t seem to have heard about it. The computer giant reported strong figures for the first quarter on Tuesday, exceeding analysts’ expectations. Dell shares jumped in response to the news.

A statement issued by the company reported net income at $945 million or 49 cents a share – that’s a big leap, up from $341 million or 17 cents a share a year earlier. Sales were recorded at just over $15 billion, up almost 1 percent on the same time last year. There may have been an inkling that these figures were going to be good, coming soon after it was announced that the company had retaken the number two position in global PC sales. HP holds the top spot.

Recommended Videos

Michael Dell, the company’s CEO and chairman, was understandably delighted with the financial report, saying, “We’re off to a solid start in our fiscal year 2012. Our substantial profit increase demonstrates that our strategy is working and our execution is improving.”

According to Dell’s statement, the strong results reflect the company’s “improved profitability in end-user-computing, particularly Dell’s client desktop and laptop offerings.” It continues: “This improved performance is the result of a higher-value product portfolio, good cost management, better sales execution and a significantly improved supply chain.”

In an interview with Dow Jones reported in the Wall Street Journal, the company’s chief financial officer Brian Gladden said: “When you look at margins, it’s continuing a trend of moving to higher margin products. We’ve seen improved margins in nearly the entire portfolio.”

According to the WSJ, Dell also said that consumer demand for PCs was slow as customers looked more closely at tablets instead. Dell itself has the Inspiron duo and two Streak tablets on the market, though sales have hardly threatened to knock the popular iPad off its perch. The Texas-based company also hopes to release another tablet at some point this year, possibly in September.

Dell’s healthy sales to businesses of products such as servers, storage devices and computers were a big factor in its strong first-quarter results. No doubt the company will be wanting to build on its success in that field over the coming months, and if the economies around the world begin to pick up, it’ll be well placed to do so.

Trevor Mogg
Contributing Editor
Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…
Topics
Dell just slashed the price of this Alienware QD-OLED gaming monitor to under $1,000
Baldur's Gate 3 being played on the Alienware 32 QD-OLED.

You won't be able to maximize your powerful gaming PC if you're still using a basic display. You'll want to take advantage of monitor deals for an upgrade, such as this $300 discount for the 32-inch Alienware 4K QD-OLED gaming monitor. With the savings from Dell, you'll only have to pay $900 for this amazing screen instead of its sticker price of $1,200, but you have to hurry. We're not sure how much time is remaining before the offer expires, so don't waste any more time and push forward with the transaction immediately.

Why you should buy the 32-inch Alienware 4K QD-OLED gaming monitor

Read more
This Dell Workstation is a powerful laptop, and it’s on sale at $280 off
The Dell Precision 3591 Workstation laptop on a white background.

Not all devices featured in laptop deals will be able to keep up with your daily activities. If you need a dependable machine, you can't go wrong with the Dell Precision 3591 Workstation, especially now that you can get it with a $280 discount from Dell itself. From its original price of $2,589, it's on sale for only $2,309 -- it's still a pretty significant investment, but you'll quickly understand why it's worth every single penny once you're using it. You have to hurry though, as the savings may disappear at any moment.

Why you should buy the Dell Precision 3591 Workstation laptop

Read more
Need a reliable PC? Get the Dell Tower Plus Desktop while it’s $400 off
The Dell Tower Plus Desktop on a white background.

Whether you're a professional who's working from home or a student who's dealing with demanding schoolwork, a reliable desktop PC is a necessity. If you need an upgrade, you may want to consider this offer for the Dell Tower Plus Desktop. From its original price of $1,350, it's down to only $950 following a $400 discount from Dell itself, which is an excellent source of desktop computer deals. You're going to have to be quick with your purchase though, as you may miss out on the savings if you don't act fast.

Why you should buy the Dell Tower Plus Desktop

Read more