Dell has seen its latest quarterly profits slump by almost two-thirds as the global economic slowdown affects the PC industry.
The world's second largest PC OEM made a net profit of $290 million in the three months to 1 May, down 63% from $784 million for the year ago quarter. Revenues weren't as badly affected, falling only 23% to $12.3 billion.
"We're continuing to transform the company on the cost side and delivering strong cash flow," said Dell chairman and chief executive Michael Dell.
Dell has been hit much harder than rival HP, which saw profits fall by only 17%.
PC OEMs much be casting an envious eye over at Apple, which seems to be effortlessly weathering this economic storm. Maybe the PC OEMs need to take a leaf from Apple and diversify. After all, looking at PC prices today, it's increasingly hard to see how OEMs can rake in huge profits from the razor thin margins that PCs now generate. That said, it was the big OEMs that pummeled the price of a computer into the dust and made it hard for anyone to make a profit.