Dell Inc is facing pressure between slow sales and declining revenue, as the company, though didn’t mention any names, said that “alternative mobile computing devices” have affected its sales, which contributed to poor performance in the past quarter.
The Chief Financial Officer of Dell, Brian T. Gladden, in a conference call said that the results of the first quarter of 2013 were mixed.
The CFO said that the company fell short of its own projected estimations. He also said that in few departments, they didn’t execute the way they should have. He also pointed out towards the recent market dynamics, saying that they also created some sort of headwind for the company.
Dell reported a decline of 4 percent in revenue, as it settled at a value of $14.4 billion. The reported profit was 43 cents per share. According to analyst expectations, the company was expected to report $14.9 billion in revenue, or a profit of 46 cents per share.
Dell’s profit has been hurt by other key players in the market such as Apple and alternates to traditional means of computing it offers.
The company reportedly struggled with its notebook division, as it dropped by 10 percent over the same quarter. Revenue in the consumer notebook department dropped by 15 percent.
Dell also admitted that consumer business was its biggest challenge in the quarter, as Stephen J. Felice, the chief commercial officer of the company said that the biggest challenge in the quarter for Dell was consumer business.
Dell faces an increasingly aggressive environment marked by high competition, which has led to a decline in sales. Dell didn’t mention the name “iPad” specifically but one can easily make out what it means when it says “alternative mobile computing devices”. The rise of tablets in particular however has made it difficult for companies such as Dell to report profits or not report losses.
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