Computer manufacturer Dell on Friday said its revenues for Asia Pacific region, including India, were down by 11 per cent for the third quarter ended October 31, compared with the same period previous year.

On quarter-on-quarter basis, revenue for the region was 12 per cent down in the second quarter ended July 31, compared with the second quarter of 2011. The company does not provide country-wise numbers.

The company said it sees the challenging global macro-economic environment continuing in the fourth quarter, which will continue to impact the results.

Once the top personal computer maker globally as well as India, the company is now struggling to defend its market share against companies like Lenovo (number one in India), Acer and Hewlett Packard.

In an interview with Business Line in June, Sameer Garde, President and Managing Director, Dell India, had said that unlike other companies, it would not look at volume growth, but revenue growth. But, that seems to be not working.

“PC business contributes 70 per cent of our revenues, while 30 per cent is from storage, servers and services. We will continue to be committed towards PC business, but growth rate from solutions will be faster than it,” he had said.

Globally, Dell reported a net profit of $0.47 billion for the third quarter ended October 31, down 47 per cent compared with $0.89 billion in the corresponding period last year.

Global revenues for the quarter were also down 11 per cent to $13.72 billion compared with $15.36 billion in the same period previous year. The company follows February to January as its financial year.

In comparison, Chinese PC maker Lenovo had reported revenues of $8.67 billion from its sales globally for the second quarter ended September 30, up 11 per cent compared with $7.78 billion in same period previous year.

Dell’s revenue in Americas was down 9 per cent, while in Europe, West Asia and Africa was down 15 per cent.

However, the company expects sequential revenue growth of 2-5 per cent in the fourth quarter, it said.

“While we have macro-economic challenges we believe we are managing business very well according to our strategy,” Amit Midha, President, Asia Pacific, Dell, told reporters on a conference call.

ronendrasingh.s@thehindu.co.in

(This article was published on November 16, 2012)
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