Dell warns of weak global demand; shares plummet
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The world’s hunger for computers is abating, says PC maker
Global demand for computer hardware is softening, computer manufacturer Dell told investors yesterday. A statement from the company said it was seeing ‘further softening in global end-user demand’ in its current financial quarter.
The statement triggered a 10% drop in the company’s share price, leaving it a seven-year low – lower than at any point during its decidedly troubled past 24 months.
This share tumble comes in spite of the fact that Dell reported a 9% revenue hike – up to $16.1 billion – for its most recent financial quarter.
That revenue growth was driven mainly by the company’s operations in Brazil, Russia, India and China, where demand for computers was still growing.
But Dell’s comment suggests that the economic malaise that has curtailed IT spending in the US and Western Europe may be spreading to those markets too.
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