Dell disappoints with sales figures

Dell disappoints with sales figures

World’s largest maker of branded Personal Computers, Dell announced that their second-quarter sales rose at the slowest pace since 2002. Worse news is that the company announced that the growth would continue to slide this quarter. The news resulted in the shares of the company saw their biggest decline in four years. The company reported that sales grew 14.7 percent and were little changed from the previous quarter.

The Chief Executive Kevin Rollins said that the drop in growth in sales is due to increasing competition and the company’s aggressive strategies to woo new customers by cutting the prices of their products. In fact, surprisingly low orders from the federal government also made the situation worse than it was. The share of the company fell by around $3.18, or 8 percent to $36.40 in the morning trading.

Dell had third-quarter net income of 33 cents a share on sales of $12.5 billion a year earlier. The company in May predicted profit of 37 cents to 39 cents on sales of $13.6 billion to $13.8 billion. This was pretty close to what the market experts and analysts believed the company would generate. The company said in a statement that the net income in the quarter ended July 29 rose 28 percent to $1.02 billion, or 41 cents a share, from $799 million, or 31 cents, a year earlier.