Dell and Hewlett-Packard reveal slide in profits
Dell has reported sharply reduced earnings in response to increased competition in the computer market.
Profits at the world's top-ranking personal computer maker slumped to £300m for the May-to-July quarter, down 28% compared with the same period last year.
And profits at rival firm Hewlett-Packard plummeted by 89% year-on-year to £76.9m.
Both companies emphasised the difficulties in gaining profits from stagnant computer markets, with Dell reporting intense price competition.
While Hewlett-Packard forecast some revenue growth in the current quarter, it credited the improvement to seasonal factors rather than hopes of an underlying market recovery.
Dell, which has led the price war among computer makers, said sales were flat over the quarter.
But profits were hit by a cut in margins as the Texas-based firm kept the lid on computer prices, ensuring a sharp drop in component costs was rapidly passed on to suppliers.
Dell, which in May revealed it would cut 4,000 jobs this year, said its operating expenses, at 10.3% of revenue, were at their lowest level in the company's history.
