Dell hit by downturn

A decline in business IT spending has resulted in a three per cent drop in earnings to $15.2 billion for Dell, reports the FT.

In terms of PC sales, which comprise 59 per cent of Dell’s business, a rise in laptop sales failed to cover for a 14 per cent drop in desktop.

However, the PC vendor has been able to save itself from a spiralling share price as its ongoing efforts to reduce expenditure begin to bear fruit. Operating costs have dropped by 11 per cent and the company has cut 10,000 personnel from its workforce.

As a result, shares rose by six per cent in after hours trading, although prices still remain over 60 per cent below yearly highs.