Share of the leading computer vendor Dell Inc. fell by seven percent on Wednesday as the company reported lowered forecast for the complete financial year.
According to The San Francisco Chronicle, Dell Inc., world’s second largest PC maker, on Tuesday missed the expectations of market analysts by 0.1 percent as the revenue generated from the computer sale in the second quarter of the current financial year was reported to be $15.7 billion. The analysts had estimated the revenue of $15.8 billion.
The company scaled down its revenue growth forecast for the fiscal year 2012 from 5-9 percent to 1-5 percent owing to weak spending on technology. The disappointing forecast is a result of current economic downturn and government’s inability to face and swim out of the crisis situation.
The company has managed to generate $890 million as net income in the second quarter of the current financial year which is a huge profit when compared to $545 million in the same quarter a year ago.
“Lackluster demand from consumers and market-share gains by Apple weighed on results, offsetting stronger corporate spending on server computers. Households have stepped up purchases of tablets and smart phones, while curtailing purchases of PCs, Dell's mainstay.” an analyst at Edward Jones stated.