Dell feels pinch as tablet sales rocket

Dell forecast third-quarter revenues that missed analysts’ estimates as its personal computer business dwindles amid a slow global economic recovery and an influx of tablet computers that has eaten into sales.

Revenue in the fiscal third quarter ending in October will decline 2% to 5% from the prior three-month period, the Texas-based company said in a statement. That is the equivalent of $13.8bn (€11bn) to $14.2bn in sales, less than the $14.9bn average analyst estimate, according to data compiled by Bloomberg.

Chief executive Michael Dell’s strategy of using acquisitions to add software, storage and networking equipment has been slow to offset declining sales of desktops and laptops, which account for more than half of revenue. Consumers and businesses increasingly favour tablet computers such as Apple’s iPad over traditional machines.

“In PCs, price pressure continues, and the iPad isn’t helping,” said Shaw Wu, an analyst at Sterne Agee & Leach in San Francisco.

Dell fell in extended trading after closing down 1.8% to $12.34 in New York. The shares have lost 16% this year.

Second-quarter net income fell to $732m, or 42 cents a share, from $890m, or 48 cents, a year earlier. Earnings excluding some items were 50 cents a share, compared with an average analyst estimate of 45 cents.

— Bloomberg


From DIY face masks to luxurious manicures, these will leave you feeling relaxed and rejuvenated.10 at-home beauty treatments to feel like you’re at a spa

Psychologist Dr Meg Arroll tells Liz Connor how to avoid feeling ‘trapped in’ while distancing yourself from others.How to avoid cabin fever while in self-isolation

Feeling a tad claustrophobic at home? Try some handy hacks for freeing up space, says Sam Wylie-Harris.6 ways to make your home feel more spacious

Buy everything on our shopping list and you have all you need to create five meals. Want to make just one of the dishes? Then follow Michelle Darmody’s colour-coded guide — for the Day One dinner, buy the ingredients marked with a red circle and so on.One list, five meals: Michelle Darmody sorts you our with a week's worth of food

More From The Irish Examiner