Dell says PC demand has stablised
TINMAN DELL is starting to think that the worst might be over when it comes to people not buying its products.
CFO Brian Gladden said that demand for Dell PCs, servers, and services "seems to have stabilised."
However that is not a call to open the bubbly from the downsized office fridge yet, he warned. The stabilisation is not consistent throughout all customer segments and geographic regions.
In other words, in some parts of the world PC demand is finger-licking good and in others it is still arse-whipping bad, and some customers are still too busy retrenching to take part in Dell's sunny new day, he might have said but didn't.
However Gladden did say that despite the inconsistencies, Dell's second-quarter earnings report next month will show its revenue increase slightly over last quarter. But that will also come with a small decline in gross margins, he indicated.
All up it is looking like Dell's best customers are starting to spend money on its kit again. All will be revealed on Friday when Dell holds its annual shareholders' meeting in Austin, where no doubt Michael will be claiming that his glorious restructuring has saved the company. µ
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A falling, and flailing, human being with no parachute stabilizes at about 192km/hr as he falls to his most probable death.
Stabilization doesn't mean things are getting better, it just means things are not changing...for the moment. But as we all know, many a stable patient has died.
Revenue up slightly + margins down slightly = dumping pent-up inventory at bargain prices.
This is hardly good news.