The increasing popularity of tablet
computers and smartphones combined with the weak economy are making
life difficult for PC maker Dell.
The company said Tuesday that its profit in the second quarter shrank 18 per cent to 732 million dollars, on revenue of 14.5 billion dollars, which was lower than the second quarter last year by 7.5 per cent.
Chief financial officer Brian Gladden said PC business is in a challenging phase, with desktop computers as well as notebooks selling worse than in the second quarter of 2011.
The company projected flat sales in the current third quarter and lowered its profit projection by one-fifth.
Dell's share prices fell more than 4 per cent in after-hours trading. Dell is among the PC manufacturers suffering most from the shift to mobile devices.
At one time Dell was the second-largest maker of PCs behind Hewlett-Packard and, according to market research company Gartner, is now fourth behind H-P, Lenovo and Acer.
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