Dell’s role in the computer market is becoming less and less

Dell Inc. announced that its revenue fell more than expected due to a drop in corporate demand for personal computers.

to report BloombergDell’s third fiscal quarter revenue reached 22.3 billion dollars with a 10% decrease compared to the same period last year; While the average estimates of analysts were about 24 billion dollars. On the other hand, the total sales of commercial and consumer computers of this company, including Dell laptops, also decreased by 11%, which is far from analysts’ expectations.

Yvonne McGillDell’s financial manager, after publishing the results, said that the income of this quarter, which ends in January (December and February), will be about 22 billion dollars; While the average estimate of analysts was 23.9 billion dollars.

Dell, which is known for its business of personal computers and laptops, has been in the focus of investors’ attention this year due to the increase in demand for its powerful servers that are capable of performing artificial intelligence tasks.

Dell had announced that by November 3 (November 12), it would earn $500 million in revenue from the sale of this equipment. Earlier this month, Dell announced a $150 million deal to sell servers to Imbue, an artificial intelligence startup.

Dell’s revenue from server sales in the third quarter reached $4.66 billion, which was more than the $4.43 billion forecast. Jeff Clarke“Our server and network equipment business grew 9 percent sequentially due to customer interest in productive artificial intelligence,” said Dell’s chief operating officer.

The increase in sales of Dell servers shows the superiority of this company’s performance compared to its competitor, HP, which experienced a decline in server sales in the same period.

Most PC manufacturers have been hit hard in the past 18 months by the crisis of severe drop in demand that followed the pandemic. HP also reported similar results last week.

However, analysts have seen signs of a resurgence in the industry. The International Data Corporation (IDC) wrote in its recent report: “While the global economy has stagnated, the computer market has passed the bottom of its curve.”

Clark said in his statement that Dell expects its revenue to grow in the new fiscal year that begins in February. Currently, analysts are predicting a 3.5% annual increase in Dell PC sales.

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