Dell faces a drop of six per cent in its income even though there is a good level of demand by consumers for netbooks and laptops which have brought up shipments.
Dell announced this drop recently and contrary to it there has been signs of more spending in the critical business sectors.
In the recent quarter the earnings of Dell fell to $334 million, which is 17 cents per share.
However, the revenue of the company was increased by 11 percent to $14.9 billion and the gross profit margin was 17.4 percent.
In the holiday season it was noted that consumers bought low cost netbooks and laptops. This has made the shipments to be higher by 29 percent. It is said that these low cost notebooks and laptops gives less profit to the company.
The recent dismal results of Dell are sharply in contrast to Apple. It has been seen recently that Apple has taken the high road if we talk of personal computers and other products.
Though Dell has a hold on much higher market than the Apple overall, but the company has been fighting in lower margin end of those business that it has pioneered.
Well, the forthcoming tablet products of Dell may do some magic in the graph of income. The Mini 5, which is the first of the tablet series, is going to be launched very soon and it will be competing Apple’s new iPad neck-to-neck.
Mini 5 is also a mobile apart from being a table computer where as the new iPad of Apple is a web-enabled tablet device. Mini Five has only 5″ screen, much smaller than the iPad. Mini 5 will be using Google’s Android operating system.
One more pinch of information to share here. Recently the competitor HP had also announced a strong PC and business server sales, which is a trend that has been also reported by Intel just last month.
Let us know what you think whether Dell’s income will have a magical rise with the launch of Mini 5.
