Dell - Things Are Not Good
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Dell originally had warned that the economy for technology was slowing down some in Europe and Asia. But the major computer manufacturer now says things are also slowing down here as well. Dell also indicates that businesses are also slowing down on the purchases they make. In this article from Fortune on Cnn Money it also states that:
Dell shares tumbled 10% to a new seven-year low after the company gave its latest grim assessment of the business climate. Outlining the areas of weakness, Gladden pointed out that in the U.S., spending by small and medium-sized businesses is down, and the financial sector, currently in a credit crisis swoon, was a bit challenging. “There’s not a lot of IT spending going on in the financial businesses,” Gladden said.
Overall big business spending, which accounts for about 80% of Dell’s revenue, was “mixed but weaker than we expected in the aggregate,” Gladden said.
Internationally, the U.K. remained a tough environment, Germany had been solid but turned weak in recent weeks and sales in China, which had been slow during the Olympics, had not snapped back as expected, said Gladden.
Which is not very surprising. With the US economy slowing down it was just a matter of time before technology got hit. Also there may be less spending on IT at some financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers, and others that fall by the way side. 
Comments welcome.
2 Comments
Don Naphen
September 17th, 2008
at 3:07pm
Dell suffered some serious hits with their infamous “customer service” based in India. Sometimes a reputation of poor service and undependable hardware never goes away. Flashy commercials “Hey Dude! You’re getting a Dell” don’t cut it. I think the guy started smoking grass once he saw how bad they were back then! LOL.
The USPS opted for HP this time around, and you’re talking an awful lot of pc’s nationwide Ron. That’s every administrative office, every Post Office and every repair facility in the nation! Big big bucks, and not one penny went into Dell’s coffers. I’d venture a guess and say many of the I.T. Departments of other major companies made the same decision and for the same reasons.
Just my thoughts. Go Red Sox … Go Pats
Diana Wilcox
September 18th, 2008
at 3:01pm
When you have a problem, you really don’t want to have to say ‘Excuse me? I’m sorry, I didn’t understand that last part. Could you repeat that please?’ I had a Dell, and I don’t think I understood one sentence the first time through. I’m not bigoted, and I found the Indian accent pleasant, just not understandable. For my next computer, I built my own, and get recommendations from chat room friends. It seems to be working for me. Anyway, that’s why Dell lost my business.