Dell Loses Revenue as Apple Continues to Lead the Mobile PC Market

In a quarterly earnings conference call yesterday, Dell’s top executives revealed that notebook sales were below what they expected and, although Apple’s iPad was not specifically mentioned, the company’s Chief Financial Officer, Brian Gladden did say that consumer interest in “alternative mobile computing devices” has contributed to the loss in sales.

The first quarter of 2012 saw Dell’s revenue drop four percent to $14.4 billion with a profit of 43 cents per share. Earlier estimates of the company’s performance was $14.9 billion in revenue with 46 cents per share.

The PC maker felt the squeeze as consumer sales of notebooks reduced by 15 percent in the first quarter. Stephen Felice, the company’s Chief Commercial Officer, said that consumer business was Dell’s “biggest challenge” in the quarter. Gladden also mentioned that demand for their products was “tougher than we planned.”

Gladden contributed some of that lack of enthusiasm for their products in “IT spending diverted to alternative mobile computing devices.”

The admission of Dell’s drop in revenue, due in part to “alternative mobile device” interest, came on the same day that new research data showed Apple as dominating the mobile PC market. NPD estimates that Apple’s mobile PC business, notebook and tablet, grew 118 percent year over year, taking the top spot over other mobile PC makers in the first quarter of 2012 with an estimated 17.2 million units.

 

 

During the call, Shannon Cross from Cross Research questioned Dell’s tablet strategy for the upcoming year.  Chairman and CEO Michael Dell was quick to respond, “We’re totally lined up with Windows 8. You’ll see us introduce tablets contemporous [ph] with the Windows 8 launch.” Dell confirmed that the upcoming launch is on track with Microsoft’s schedule.

The company has a lot of work ahead if it hopes to regain traction in the mobile PC market this year.

[via Apple Insider]

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About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik