Dell Technologies: 6 Takeaways From Q3 Earnings
The weak demand for Dell PCs was hedged by a lower cost of shipping and components, and a reduction in server backlog which drover better than expected infrastructure performance.
Slumping PC and Peripheral Sales
Commercial and consumer PC and peripheral sales came in at $13.8 billion, lighter than last year with overall revenue down 17 percent, reflecting trends in the broader market. Commercial sales were down 13 percent while consumer sales dropped 29 percent. Buyers in both categories aiming for higher-performing rigs, company executives said during the call.
The company reduced its PC and peripheral backlog to normal levels during the quarter, and is now battling rivals offering steep discounts on devices. Clarke said Dell is in a good position to take advantage of market conditions.
“If I look at the CSG business, again, largely a handful of minor exceptions, supply is ahead of demand across consumer PCs, commercial PCs, displays, docs, to the point that we’re now able to readjust our freight networks to take advantage of that. We’re in a good position.