Dell Expects Revenues Under Analyst Projections

By: Mike Fossum - May 23, 2012

Back in February, computer hardware giant Dell projected a revenue growth of 5 to 9 percent for 2012, though now the company reports that it’ll likely miss this estimate.

Dell has just projected that 2nd quarter revenue would sit between $14.7 billion to $15 billion, while Wall Street analysts predicted $15.4 billion, mainly due to a lull in business purchases of tablet devices and smartphones. More specifically, businesses have been switching to iPhones and iPads in droves, replacing traditional notebook PCs. CEO Michael Dell stated during a conference call with investors, “In my own interactions with larger customers, we are seeing a delay and a pause in spending activity.”

Still, Dell points out that it will be selling tablets running Microsoft’s Windows 8 OS come fall, which should work to boost sales. The company reported a Q1 net income of $635 million, compared to $945 million in Q1 2011, at 36 cents and 49 cents per share respectively. Revenue fell 4% during this time period, to $14.4 billion, short of an analyst-projected $14.9 billion.

In related news, a recent report from CNET suggest the first tablets powered by Windows 8 will debut in November.

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Mike FossumMike is a writer and videographer based in Lexington, KY. Follow Mike on Twitter and Google+.

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