Dell's Q3 profit slides 54 percent

20.11.2009

Dell was in need of a strong quarter after its main rival, Hewlett-Packard, released last week that were better than expected. HP's earnings before one-time charges were $1.14 per share, up from $1.03 a year earlier, while revenue dropped 8 percent to $30.8 billion, the company said. HP will report its full results on Monday.

Dell has also been struggling in the PC market, where it has in the worldwide rankings behind HP and Acer, according to IDC. Dell depends more heavily than its rivals on the business sector, which cut spending sharply amid the recession.

The company also faces pressure in the data center, following HP's news last week that it will for $2.7 billion, and Cisco Systems' entry into the blade-server market earlier this year.