20 Feb 2010

Dell hurt by lower profit margins

8:01 am on 20 February 2010

Dell has reported a 6% fall in quarterly earnings, as low profit margins offset an increase in sales.

The world's third-largest computer-maker made a net profit of $US334 million in the three months to 29 January, down from $US351 million a year ago.

Dell saw sales of its personal computers rise 29% during the quarter, but more consumers chose to buy less profitable, cheaper models.

However, the BBC reports revenues for the quarter rose 11% to $14.9bn.

Dell's figures came a day after Hewlett-Packard reported that its net profit for the same Christmas-period quarter soared 25% after strong sales.