Dell’s Potential Pricing Increases, Supply Chain Issues And $101 Billion Year
Dell Technologies just reported a record-breaking year, topping $100 billion in annual revenue for the first time in the company’s long history.
However, the Round Rock, Texas-based PC and infrastructure giant saw its stock immediately fall 10 percent after reporting its fourth-quarter earnings results last week.
As Dell unveiled a 16 percent increase in sales during its fourth quarter to $28 billion, the company also reported several issues related to the supply chain and increased freight costs that could hinder growth in 2023. These issues, which are affecting many IT companies across the globe, are leading to product price changes.
“As costs go up, it’s being transferred into price—whether that’s commercial PCs, whether that’s the premium consumer side of our business, we’re seeing the same thing broadly across the server base and the same is true in our storage base. So that cost is being transferred into price as efficiently as we can,” said Dell Vice Chairman and Co-COO Jeff Clarke during the tech giant’s earnings call last week.
On the upside, Dell reported record-breaking sales for its entire fiscal year 2022, which ended earlier this month. The company generated $101.2 billion in revenue for the year, representing an increase of 17 percent year over year. Dell’s net income for the entire year reached $4.9 billion, up 120 percent year over year.
From Dell’s supply chain woes to VMware pricing processes ahead, CRN breaks down the five most important takeaways from Dell’s fourth fiscal quarter financial earnings report that channel partners, investors and customers need to know.