Dell might post revenues below original forecasts

Dell might post revenues below original forecasts

World’s largest maker of personal computers, Dell has slashed its outlook and also warned the market that its quarterly earnings would fall about 30 percent short of forecasts.

The company has become a victim of slowing down sales in the personal computer market and the news resulted in a massive fall in Dell’s share price on the stock exchange.

Dell’s share prices fell down by around 12 percent after it issued the disappointing outlook. The company faces serious competition from companies like Hewlett Packard and Lenovo and just recently announced their plans to start selling AMD processor powered servers due to high demands in the market.

The company also faces a lot of criticism over its poor after sales service record. Eric Ross, an analyst at ThinkEquity Partner spoke about Dell: “Dell, they are having problems because internally they are in disarray. Dell has done an amazing job of growing, but they don’t know how to retrench very well. Inside Dell, they don’t know where to turn.”

Goldman Sachs analyst Laura Conigliaro added: “Our take is that Dell’s miss is largely about Dell, although it does add yet another reaffirmation about the state of the commercial PC market, mostly in desktops.”