Dell struggles with declining share, rising competition
Dell Inc.’s disclosure of a possible hefty settlement charge related to fraud allegations adds to a growing list of woes for the tech giant. Shares of the Round Rock, Tex.-based company rose 0.6% to close at $13.15, after falling sharply late Thursday when Dell said it had established a $100 million reserve in anticipation of a possible settlement of federal securities fraud charges. Dell’s negotiations with the Securities and Exchange Commission relate to “negligence-based fraud charges” in connection with “the company’s disclosures and alleged omissions prior to Fiscal 2008 regarding certain aspects of its commercial relationship with Intel Corp.
Over the few months, the company has seen its position in the PC market erode, pushing it down to the No. 3 spot in terms of market share. It has also struggled with declining profit margins. Dell’s stock has fallen more than 15% this month, and roughly 9% year-to-date.
Comments are closed.