Dell＇s sales result was a bad news for Intel

Published:2012/5/24 3:22:00 Author:Ecco From:SeekIC

Dell Inc. has a disappointing first quarter sales result and a lower-than-expected second quarter sales target. However, it is a bad news for Intel Corp., which has forecast growth above the seasonal average for the rest of the year.

Dell (Round Rock, Texas) indicated that PC demand is slowing, tablets and smartphones are cannibalizing notebook sales and customers are delaying IT spending. Dell reported a net income in accordance with generally accepted accounting principles (GAAP) of $635 million which lowered 33 percent from the year-ago quarter. The company’s GAAP earnings per share, 36 cents which is lowered 27 percent from the year-ago quarter. Dell said it expects sales for the current quarter to increase by 2 to 4 percent from fiscal first quarter levels, short of consensus analysts’ expectations.

Intel has said it expects its second quarter sales to increase to between $13.1 billion and $14.1 billion, up 2 to 9 percent compared to the first quarter. Intel is one of the few semiconductor companies whose margins are close to peak and whose growth spending is expecting to outpace sales growth this year.

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