Dell profit drops 47 percent

  • Dell reported a 47 percent drop in third-quarter profit on the back of lower PC sales, a weaker demand from corporations and the shift to mobile devices.

    It posted net income of $475 million or 27 cents a share in the quarter, compared with $893 million or 49 cents a year earlier.

    Meanwhile revenue in its fiscal third quarter fell 11 percent to $13.7 billion, lower than the analyst estimates of $13.89 billion.

    Dell's consumer PC business continues to languish as more consumers turn to smartphones and tablets for basic computing.

    Meanwhile, the firm’s corporate customers have continued to delay spending due to the uncertain state of the economy.

    The world’s third-biggest personal computer maker warned it "sees the challenging global macroeconomic environment continuing in the fourth quarter."