Dell is in the midst of an effort to cut costs by contracting out parts of its business, cutting staff and other means. In April it said it wanted to save $3 billion by 2011 by reducing its headcount and sourcing cheaper materials and components.

The company has started a temporary hiring freeze, though there will be some hiring to meet specific needs, CFO Brian Gladden said on the call. Dell has already shut down some manufacturing plants and customer service centers around the world this year to reduce costs.

Dell is finding that customers in emerging countries are willing to spend on its products. In the BRIC countries -- Brazil, Russia, India and China -- revenue increased 20 percent year-over-year, while unit shipments increased 43 percent.

Dell said it would take a cautious approach to the coming quarters and act conservatively. Product lines that deliver higher margins will be introduced in favor of lower-margin products, Michael Dell said.

The company has decided to keep its Financial Services unit, which it had put up for sale earlier this year. It is a profitable unit for Dell despite the economic environment, Gladden said.