Data from Gartner indicate that Dell (DELL) may not be doing as well as Wall St. bulls had hoped. Figures show that in Q2, PC shipments by Hewlett-Packard (HPQ) rose 36% but those from Dell (DELL) fell 5%. The study, quoted in the FT, points out that price competition is still a problem, leading to the potential for falling margins in the PC industry.
Michael Dell, Dell’s CEO, has cautioned that investors should not be too optimistic about his company’s turnaround. After Q1 figures showed slight improvements at the company, the stock moved up and in now in the plus column by 30% over the last year.
But, those shares may now be ahead of themselves. So far this year, Dell and HP are both up about 15% but it would be almost impossible to argue that HP is not the stronger company by far, as the Gartner figures show.
The numbers are also an indication that Dell’s Q2 figures may be disappointing. The Wall St. impression that Dell is doing better is probably already fragile. And, it could easily break.
Douglas A. McIntyre can be reached at [email protected].
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
