The company said earlier this year that it plans to reduce costs by $4 billion by the end of fiscal 2011, a change from the original target of $3 billion announced in May.

Revenue for mobile products -- which includes laptops -- was $3.88 billion during the quarter, a drop from the $4.85 billion it reported last year. Desktop PC sales were $3.16 billion, a massive drop from the $4.87 billion reported last year. Other business units -- including servers, storage, software and enhanced services -- also had declines in revenue.

PC shipments are slowing down as consumers and enterprises hold back on spending during the recession. Dell's PC shipments fell by 16 percent in the U.S. year-over-year during the first calendar quarter of year. Rival Hewlett-Packard surpassed Dell as the number-one PC vendor in the U.S. during the quarter, according to IDC.