Linked by Thom Holwerda on Tue 15th Jan 2013 01:24 UTC
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Member since:
2011-08-30
It's really not like me to defend Dell of all companies, but I really don't get this.
I remember seeing a graph a few weeks ago in some other story about this topic, but I have no idea where I saw it. It showed that Dell's market cap had fallen by about a third, but sales were relatively flat. They were down by low single digits year over year.
I know sales aren't indicative of profit, but for a pretty mature company like Dell, I'd think if their sales are steady they should be good. So what gives? Are they suddenly mismanaging money? Is previous mismanagement suddenly being discovered? Or is this speculation?
Even though they may be projected to ship fewer boxes in the future, Dell gets a good chunk of cash from organizational support contracts. And afaik, those aren't really in danger.
Can anyone explain? I'm basing off of experience working with Dell about 5 years ago. Have things changed that much?