Dell Price Cuts Helping Only So Much
By
Is Dell fighting yesterday’s war? That’s one possibility that weighed on the shares of the world’s No. 1 PC vendor in the wake of its announcement Monday that its first-quarter financial results would once again come up short.
Faced with slowing demand and increased competition, Dell unsheathed its most trusted weapon in the first quarter: price cuts. But while the price cuts appear to have taken the expected toll on Dell’s margins, they don’t seem to have delivered the payload of sales growth. Revenue in the first quarter will come in at $14.2 billion, according to Dell, vs. its previous estimate of $14.2 billion to $14.6 billion. EPS will be 33 cents, compared with the company’s earlier projection of 36 cents to 38 cents.
Comments are closed.