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Dell Sees Further Softening In Global IT Market
The computer maker saw its stock drop to a 10-year low Tuesday, after reporting that global demand for its products continues to erode.
By Antone Gonsalves
InformationWeek
September 16, 2008 02:13 PM
Dell (Dell) on Tuesday said it is seeing a "further softening" of demand for its products, the second warning in as many months by the computer maker.
Dell saw its stock fall to its lowest level in 10 years following the disclosure. The company reported Aug. 28 that the "continued conservatism in IT spending" it saw in the United States had spread into Western Europe and several countries in Asia. On that same day, Dell reported a 17% drop in profits.
More Hardware InsightsWhite PapersTV 2.0 - The Big Screen PC Using the Right Servers to Cut Your Power Costs ReportsIT Team Delivers Financial And Environmental Green Self-Healing Storage Systems Boost RAID Capabilities In the latest announcement, Dell said demand had further eroded: "The company is seeing further softening in global end-user demand in the current quarter."
Dell is in the middle of a major reorganization that began early last year with the return of founder Michael Dell to the chief executive post. During Dell's three-year absence, the company suffered a decline that led to it losing its status as the world's largest PC maker to Hewlett-Packard.
Since his return, founder Dell has embarked on an overhaul that included a major push into consumer markets. Rather than sell solely online, the company started selling its PCs through major retail outlets worldwide.
In addition, the company continues to reduce expenses, which ...