Dell has reported a 79 per cent hit to its profits, with the firm suffering from the continued decline of global PC shipments.
Upon releasing its quarterly financials, the PC maker reported its net profit to have fallen to $130m, whilst the firm’s revenue also declined by two per cent to $14bn.
The declines are a further sign of change within the PC market, as consumers increasingly opt for smartphones and tablet devices over the traditional desktop system.
The slip in profits couldn’t come at a worse time for Dell shareholders, as the firm remains locked in a dispute between founder Michael Dell and the firm’s shareholders.
Whilst Mr Dell hopes to take the firm private, a number of the firm’s largest shareholders are looking to block the move.
An initial deal of $24.4bn to buy back the company was proposed by Mr Dell and private equity firm Silver Lake, but shareholders have labelled the bid as ‘cheap’, insisting that the company is ‘severely undervalued’ and would be a ‘giveaway’.
A decline in profits would seemingly make the deal proposed by founder Dell a more attractive one.
Mr Dell maintains that if successful with the private buy out, the firm would shift its focus away from PCs in order to focus on tablets, smartphones and other new technologies.