This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7586979.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Dell pricing policy hits profits | Dell pricing policy hits profits |
(about 18 hours later) | |
Dell, the world's second largest PC maker, has said that a "strategic" effort to cut the prices of its computers had dented its earnings. | |
The firm made a profit of $616m (£336.8m) in the three months to 1 August, down 17% on the same period a year earlier. | The firm made a profit of $616m (£336.8m) in the three months to 1 August, down 17% on the same period a year earlier. |
Restructuring costs - partly linked to job cuts as the firm looks to slim down - had also hit the bottom line it said. | Restructuring costs - partly linked to job cuts as the firm looks to slim down - had also hit the bottom line it said. |
The profit slump was worse than many analysts had expected. | The profit slump was worse than many analysts had expected. |
Earlier this week, Dell unveiled two new laptops which it said were designed for small businesses, governments and educational institutions in emerging economies. | Earlier this week, Dell unveiled two new laptops which it said were designed for small businesses, governments and educational institutions in emerging economies. |
Shop presence | Shop presence |
Chief Financial Officer Brian Gladden said Dell made had made "strategic pricing" changes in Europe, the Middle East and Africa to speed up growth. | Chief Financial Officer Brian Gladden said Dell made had made "strategic pricing" changes in Europe, the Middle East and Africa to speed up growth. |
Dell built its reputation and profits on just-in-time production of computers ordered direct by customers rather than sold through stores. | Dell built its reputation and profits on just-in-time production of computers ordered direct by customers rather than sold through stores. |
However, it is adjusting that model - by getting its computers into more shops. | |
Mr Gladden said he hoped that its growing presence would boost demand from parents of students returning to school after summer holidays. | Mr Gladden said he hoped that its growing presence would boost demand from parents of students returning to school after summer holidays. |
Sales in the period rose by 11% to $16.4bn - better than Wall Street's expectations. | Sales in the period rose by 11% to $16.4bn - better than Wall Street's expectations. |
Previous version
1
Next version