Dell sounds a cautious note on computer business

Posted Sep 16th 2008 9:13AM by Zac Bissonnette
Filed under: Bad News, Dell (DELL)

In a press release issued this morning, Dell (NASDAQ: DELL) warned investors that it is "seeing further softening in global end-user demand in the current quarter."

More optimistically, the company noted that "grew unit shipments faster than the industry in the first half of calendar 2008 and expects to grow faster than the industry for the full year."

That's bad for competitors with weaker brands such as Hewlett-Packard (NYSE: HPQ). Dell is struggling to meet its growth targets in the face of weakening demand, even as it gains market share. How badly are the companies that are doing average relative to their peers doing?

Dell's press release is more of a commentary on the market than the company itself although, in pre-market trading, it helped send Dell shares down nearly 7%.

Tags: computers, DELL, HPQ, PCs, tech spending, TechSpending

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Reader Comments (Page 1 of 1)

9-16-2008 @ 10:59AM

st said...

Is Dell a gauge for technology spending? Is Dell a technology company at all? Dell was built on the way they sell, not a technology. I think Dell has no new technology to sell and has to wait for other companys to sell it to Dell. A better gauge would be a company that develops their own technology, that is indepentent to them. Dell is more like WalMart then Hewlett.

10-20-2008 @ 9:40AM

M Pollock said...

Dell is a sad story and very bad investment for me...6000 shares, buying to average down in hope, purchased at avarage $39.just prior to Mr Dell and Mr Rowlins, pump and dump tactic.....
No one accountable for these actions, makes DELL a NO NO for me at any price.
If Mr Dell is still in a BUYBACK mood maybe he would like to buy my shares for what I paid.