PC maker Dell Inc. isn't helping to calm nervous investors, who saw the Dow Jones drop 504 points on Monday after the credit crisis pushed Lehman Brothers Holdings Inc. into bankruptcy. In a statement, Round Rock, Texas' Dell said:
When Dell announced Q2 financial results on Aug. 28, 2008, it reported continued conservatism in IT spending in the U.S., which had extended into Western Europe and several countries in Asia. The company is seeing further softening in global end-user demand in the current quarter.
Dell, the world's No. 2 PC maker, also said it expects to incur costs as it realigns its business to improve competitiveness, reduce headcount and invest in infrastructure and acquisitions. The Wall Street Journal reported that Dell has approached contract computer manufacturers with
offers to sell its plants and that some factories Dell doesn't sell could be closed. Last year, Dell changed its direct-order
business model and started selling PCs in retail stores.
Dell shares were down almost 8% in premarket trading on the Nasdaq. MarketWatch notes
softening PC demand is also threatening the chip sector. -
Baz HiralalDell sees further softening in global IT demandDell's plans to cut costs by selling plantsSoftening PC demand threatens chip sector
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