The PC market is still sluggish, and Dell s revenue in 2023Q3 fell by 10 to 22.251 billion

Mondo Finance Updated on 2024-01-19

Dell recently announced its third-quarter revenue report, which showed that Dell's Q3 revenue fell 10% year-on-year to 222 due to the continued sluggish demand for personal computers (PCs) by enterprises$5.1 billion, less than the average analyst estimate of $23 billion, a sharper decline than expected.

Among them, the Client Solutions segment, which includes sales of enterprise and consumer PCs, generated revenue of 122$7.6 billion, down 11% year-on-year, well below analysts' expectations;Infrastructure Solutions business revenue was 84US$9.9 billion, down 12% year-on-year.

Dell CFO Yvonne McGill said at a conference following the results that revenue for the fiscal quarter ending January would be about $22 billion, below market expectations of $23.9 billion. McGill said that while "we are seeing CSG (Solutions Business) demand remain stable, we are "yet to see a full recovery in the PC market" and that the PC division will see a "low-single-digit sequential decline" in sales.

At the moment, analysts are already starting to see signs of recovery in the sector. IDC wrote in an October report that while the global economy remains sluggish, the PC market has "come out of the trough."

Dell, which is known for its PC business, has attracted investor interest this year as demand for high-performance servers for running artificial intelligence (AI) workloads has surged. Dell said that as of Nov. 3, the revenue from the sale of servers for AI was $500 million.

According to the data, Dell server revenue in the third quarter was 46$600 million, compared to the average analyst estimate of 44$300 million. In a statement, Chief Operating Officer Jeff Clarke said, "Our server and networking business grew 9% sequentially, driven by customer interest in generative AI. ”

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