Dell hit by lower profit margins

http://news.bbc.co.uk/go/rss/-/1/hi/business/8523182.stm

Version 0 of 1.

Dell has reported a 6% fall in quarterly earnings, as low profit margins offset an increase in sales.

The world's third-largest computer-maker made a net profit of $334m (£215m) in the three months to 29 January, down from $351m a year ago.

Dell saw sales of its personal computers rise 29% during the quarter, but more consumers were choosing to buy its less profitable, cheapest models.

Despite the profit fall, the US group's results still beat market expectations.

Its revenues for the quarter rose 11% to $14.9bn.

Dell's figures come a day after rival Hewlett-Packard reported that its net profit for the same key Christmas-period quarter soared 25% after strong sales.