After languishing for a while it seems that the Michael Dell's tin box shifting operation is back from the dead. Dell raised its yearly income forecast after third-quarter margins and earnings smashed Wall Street expectations.
Apparently it has been doing well thanks to the sliding costs of PC components. The personal computer maker, which vies with Acer Inc for the No. 2 spot in the global PC market, expects stable demand from government and corporate customers and favourable component prices this current quarter.
Analysts warned that Dell still had to prove to investors its improvement could be sustained. The company did caution that margins would be "tempered" on a mix shift toward the consumer business during the holiday quarter.
Corporations have been upgrading aging hardware and sales in Dell's large enterprise business rose 27 percent amid good demand for desktop PCs, servers and networking. On a conference call with analysts, Chief Executive Michael Dell said that the third-quarter results are beginning to demonstrate that his strategy has paid off.