Falling PC sales hamper Dell’s efforts to diversify into more profitable products

Dell Inc forecast fiscal fourth-quarter sales that missed analysts’ estimates as falling personal computer sales hamper the company’s efforts to diversify into more profitable products for data centres.

Sales in the current period will rise 2%-5% from the prior quarter, the Round Rock, Texas-based company said in a statement, indicating revenue of $14bn to $14.4bn. That’s less than the $14.5bn average estimate of analysts, according to data compiled by Bloomberg.

Dell, the No 3 PC maker, is struggling amid a deep slump in demand as companies wait to upgrade machines and consumers turn to smartphones and tablets like Apple’s iPad and iPhone. Even as chief executive Michael Dell works to mitigate the decline by adding storage, networking gear, software and services through acquisitions, the company still gets half its sales from PCs.