Its been a tough year for a number of the big name in the technology industry and the next to suffer is one of the biggest computer manufacturers going as Dell record a drop in profits of a whopping 47%. An unstable economy has meant that large businesses and consumers have started to slam the brakes on spending and stick with their current hardware. In the last quarter Dell saw a total net profit of £300m whilst in the same quarter last year profits were recorded at £533m.
Whilst this is a huge loss, Dell are forecasting that the seasonal pickup in sales will generate a rise in revenues of around 5%, as Dell’s CFO Brian Gladden commented “It’s not clear what’s going to cause them [businesses and consumers] to increase their spending in the short term, given the uncertainty in the economy”.
He added that in the next few weeks and months, the launch and uptake of Windows 8 should help with spending as users turn towards new hardware for the new OS.
Source: BBC News
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