Dell warns of weak global demand; shares plummet

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.

Further reading

Dell blazes an iSCSI trail
Dell’s acquisition of iSCSI specialist EqualLogic is just step one of its plan to shake up the storage industry

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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