Dell Post Strong Q1 Profit Results

Dell has just released quarterly figures showing that in the first 3 months of this year, ending May 2nd, Dell has earned $784 million, up from $756 in the same period last year. Revenue for the same period has jumped 9 percent to $16.08 billion, from $14.72 billion.

This has been put down to strong growth of commercial and consumer products and services, and also down to a cost cutting drive the company is currently going through with. Dell aims to knock $3 billion from its costs to regain its market leading status from Hewlett-Packard in the world-wide market.

Shares in Dell have jumped 12 cents today, closing at $21.91, although in extended trading this has risen even further to $23.83.

Chief Financial Officer Donald J. Carty noted that 'U.S. businesses are holding back from spending" on desktops but that sales of servers and data-storage equipment were holding up.'

Mr. Carty also gave figures showing a 43 percent increase in notebook sales from 12 months ago, showing a continuing trend of end users making the switch.

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Please don't stop there, I'd love to hear that rant as I've been so busy with other things not to know what all Dell's been up to for the last several years.

I'm one of those Dell Dimension 8200 customers from 7 years ago with one of their rock solid machines however... it's time to upgrade to newer faster components and I'm hard put to pay extra on RAMBUS memory upgrade for a machine this old. All I got was 512 mem and now am working with 12.1 MP RAW photo files, Photoshop, Painter 9.5, and finding it hard to work with this outdated equipment. It has USB 1.1 ports - and if not for having yanked out the 56K modem to free a slot and put in a USB 2.0 Firewire combo card would not be able to run a Cintiq or other equipment which requires it. I'm also among those who refuse to upgrade to Vista. lol What gets me is while looking at XPS systems, all they offer is XP Media. I prefer XP Pro. They also don't offer flexibility in sound cards, or much else for that matter unless you are filthy rich. One good thing I could say is they are offering free ship until October 08' I believe.

With my system they sent out a company called Banktech for repairs and fortunatelythey were qualified but... minimalist in what they would do. As example, I ordered a slave drive installed since they were coming out to replace the primary and all they did is hook it up and left me to format on my own. Not a huge thing, but they failed to mention it wasn't formatted leaving me to think something was wrong with my new drive until figuring this little detail out. *grin*

Every part of this machine has refurb replacement parts installed in it thanks to Dell's thrifty ripping off the customer. They sell it by saying how more advanced and updated the parts are and how lucky we are to get them. Now I just call my computer 'Frankenstein' instead of Masterblaster like when it was new. Compared to the previous system (Compaq Presario using Win95 upgraded to Win98SE w/3 GB HD - no that's not a typo), it seemed a miracle wonder system until realizing they'd hooptied it with proprietary memory.

Please... someone give plenty of reasons not to buy Dell and advise something better to consider before I fly over that cliff again! (not an Apple) I live on an island so need a company to repair systems 22 miles cross channel at no additional cost. Is this too much to ask?

Well, I would say that for a desktop, first and foremost, its always best to build your own.

However if you have to buy into a brand, nothing beats HP's high-end desktops. They are very well-built, although personally I don't like the glossy finish. Also, while I haven't confirmed this through first-hand experience, HP is said to have moved their customer support back to the USA, so it should be solid. That extra customer support will cost you though, since their machines usually only come with the standard 1 year warranty.

Now for Dell, do NOT buy an Inspiron model, unless you're a masochist. Buy an XPS model, since they are dedicated to better tech support. Dell also has longer, and cheaper warranty periods than HP. Also, I would suggest getting the cheapest XPS you can, and then upgrading it with extras by yourself. Dell charges a HUGE premium on their upgrades. If you are going to upgrade anything through Dell, upgrade the processor, but for everything else, it's better to purchase it aftermarket and 'Do it yourself.'

Ever since Michael Dell left the company, the new CEO screwed everything up, really bad.

If you purchase Dell's last-gen computer lineups on eBay, like the Dimension and the older square-screen black inspiron laptops, they were built like tanks. Computers built with solid quality, meant to run for 20 years without even being well kept. They were designed to be extremely sturdy and reliable, because Dell was selling these computers to huge corporate and government contracts.

Now they have the 'everlasting gobstopper' problem. The Dimensions are outliving the normal consumer upgrade cycle. There are many happy people with Dimension computers with intel P4 processors. These customers get robbed by Dell for $85 for a 512mb memory upgrade, but that's nothing compared to a customer sinking $1,500 on a new computer.

What makes it worse, is that instead of consumers embracing Vista, they are afraid of it. They would rather stick to Windows XP, hence, no reason to upgrade to a new computer. The dimension runs Windows XP very well.

They have since fixed this by separating the consumer and business models, and segregating the quality of each lineup based on price. I.E Consumers with a low budget purchases(Inspiron) get lemon machines, refurbs instead of new machines, and generally shat on by customer support. Customers who make high purchases(XPS) get dedicated American tech support, better quality machines, better customer care. Customers who purchase in bulk with business accounts get a seperate(Vostro) lineup of machines, and direct level 2 customer and tech support.

But without going into a rant about all the shady and illegal stuff Dell does, that's it in a nutshell.

Noooo.....

I want dell to go bankrupt, I've had a horrible experience with them.

I bought a Dell Inspiron 1520 mainly for the 8600M GT for Autodesk Inventor. Anyways...as soon as I get the laptop, the LCD is defective. Made a service call and they offered to replace the LCD. This started a chain of sending out techcs, it was probably the worst expirence I've had in my life.

The tech came to replace the LCD, he then scratched and warped the plastic on the notebook. I called and had them replace that, same tech, he then broke my power button. I called and then demanded they just send me a new machine. That took at least 6 transfers and 2 hours of talk time, no joke no exaggeration. I finally got them to "approve" a replacement. Then just recently I got a lot of errors that looked something like this:

*** Hardware Malfunction
Call your hardware vendor for support
NMI: Parity Check/Memory Parity Error
*** The system has halted ***

So then I called and got that fixed. This thing isn't even a year old, not even close and it had a major issue. Plus the plastic is loose, the hinge squeaks loudly, the screen is dimmer already, and it just feels cheap. As far as I'm concerned, I hope Dell just fails. I urge everyone I know to boycott them, don't give them business. I just feel so powerless, I am stuck with this load of junk. If I've had this much trouble in the first year, I am scared of the future.

That is interesting. Dell notebooks are built to be very modular, and easy to replace individual parts. In fact, the LCD screen should be one of the easiest to replace, since all you have to do is remove the top bezel above key keyboard(it snaps off), disconnect the cable to the LCD, and just bolt-off/bolt-on a new one.

To screw that up as a technician, you must be either a clueless idiot, or have no experience repairing notebooks before. I would assume the latter. There is actually no such thing as "Dell technicians." Dell outsources its on-site installations to a company called Installs Inc., who then contracts independent companies to do the work. Satellite companies like DirecTV do the same thing.

Basically it's a complete gamble. Either you get a seasoned pro that shows up at your door, or a complete novice who is learning through trial-and-error, only on your expensive machine.

As far as your replacement machine being cheap, it sounds like you got a refurbished laptop. Inspirons have high failure rates out of the factory. Dell tries to save costs by refurbishing returned or faulty models and sending them out as 'brand new replacements.' I would take a very close look at that notebook, and check the software on it. You might find remnants of a previous owner on the hard drive.

Agreed, I've replaced almost every part on a Dell. Now Toshibas on the other hand, good luck! They don't even offer the documentation to service it.

This is a very interesting report, considering Dell had a terrible Q1 compared to HP and its other competitors, and is involved in more scandals than you can shake a stick at. Not to mention that, during Q1, they shut down their major factory in Texas, laid off workers in other factories, and are in a padagrim shift to move it's terrible customer service back to middle america, and move it's PC sales to store fronts.

I wouldn't be surprised Dell is moving figures around, and playing with words, to cover up their terrible Q1 slump. I'm going to repost what I iterated in another thread:

HP (#1) trades for double than what Dell is worth. Acer (#3) trades for triple. Lenovo (#4) is brand new to the PC division since 2005, yet is is on an upturn to reach Dell's position. Toshiba (#5) and Sony can't be counted, because they span across the entire range of consumer electronics, and therefore their market prices are affected by too many sectors.

All four companies dropped off after the Christmas holiday, but only three of them picked up after the January slump. Guess which one has been on a constant downturn since Christmas? That's right, Dell.

Excluding the newcomer Lenovo, only two of the three companies have seen healthy growth over the past 5 years. Guess which company has been sinking instead? Yeah, that would be Dell.

Now Dell started to pick up in late April, thanks to the tax rebates and governemnt stimulus checks, but that still doesn't cover up their bad Q1 downturn as shown on the stock exchange here.

It's been proven in the courts that Dell is capable of lying and cheating people when it comes to financial information, I wouldn't put it past them to be telling some fibs about their real Q1 progress. Not to mention, they did awful in their Q1 last year, and doing a little better than awful, really isn't worth bragging about. Especially when your company is stuck in a 5-year downturn.