“The strong first quarter builds on the fourth-quarter rebound and shows rising confidence in the PC supply chain and commercial client base along with persistent demand from consumers,” said Loren Loverde, vice president of IDC Trackers, said in the report quoted by MarketWatch.
One theory about the rebound is that sales of Microsoft Corporation’s (NASDAQ: MSFT) Windows 7 combined with a better business environment to create the surge.
Dell has caught up to its completion in most customer satisfaction surveys like those conducted by Consumer Reports and the American Customer Satisfaction Survey. These improved ratings have not turned into better sales.
Dell’s shares have lagged both the S&P 500 and Dow Jones US Computer Hardware Index from 2005 though early 2010. A Dell share bought for $100 in 2005 was worth $34.10 on January 29th, 2010. The same $100 invested in the Dow Jones US Computer Hardware Index grew to a value of $152.10 over the same period.
Dell’s revenue peaked at $61.1 billion in its 2008 fiscal year which ended February 1, 2008 . The company had net income of $2.9 billion that year. In the fiscal year ending January 29, 2010, Dell’s revenue fell to $52.9 billion and net income dropped to $1.4 billion.
Dell management has elected to just mail it in.
Douglas A. McIntyre
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