Dell's Profit Plummets Amid Buyout Brawl

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If things keep going like this, Dell's buy-back offer is going to start looking pretty damn sweet to those investors holding out for more money.

Dell Inc, the PC maker embroiled in a takeover battle between its founding CEO and activist investor Carl Icahn, on Thursday reported a 72 percent slide in quarterly earnings as PC sales extended their downward spiral.
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Sounds like Dell is getting his way, make the price drop till the board jumps at it.
 
The old "I'll bring this company to the brink of destruction and then buy it cheap" trick.

Nicely played, Mr. Dell, nicely played.
 
good for him -- he build the damn place and dell really hasn't done anything special in the past 10 years. Let him have his way, and maybe do some good things with the company.
 
collegeboy69us said:
good for him -- he build the damn place and dell really hasn't done anything special in the past 10 years. Let him have his way, and maybe do some good things with the company.
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Problem is that these people don't care about the company. That is the bad thing about a company being public, the people involved don't care about it. Nobody that owns shares in Dell care about the actual devices made. They care about money. doesn't matter if they made 10x what they bought shares at they still are pissed that they didn't make 11x (just making up numbers to make a point). So they don't care if they hand over the company to Mike Dell and he turns it around and starts making great products. That just means that he might do that, and then profits might start to go up again and they aren't getting a cut of that. Doesn't matter if he was to cut profit for 5 years to make bold changes to make more profit 10 years from now, the fact that some day at some time he could make more money than Dell does now they are not going to like that.

This is the same reason that companies can make record profit and their shares drop because people are pissed that they didn't make larger record profits than what they did.

Not saying that private owned companies can't have issues also, but you have a lot less people bitching and no less chance of lawsuit when you decided to make a bold change and actually make good products.
 
PCs are at a decline as well and it isn't necessarily that hard to put together a computer these days. I'd totally understand the hesitation to build a custom comp 5-10+ years ago. Now mostly everything is plug and play, auto bios setup, if it posts and can install, it runs. Even overclocking is dumbed down.

But you are right, a lot of ppl that own shares in a public company really could give a rats' @$$ how it actually does as long as they making profit off the shares.

But regarding the decline in PC sales, there's not much any company can do in general. More people moving to mobile, and desktops are mostly for enthusiasts that would likely build their own anyways.
 
JL6speed said:
PCs are at a decline as well and it isn't necessarily that hard to put together a computer these days. I'd totally understand the hesitation to build a custom comp 5-10+ years ago. Now mostly everything is plug and play, auto bios setup, if it posts and can install, it runs. Even overclocking is dumbed down.

But you are right, a lot of ppl that own shares in a public company really could give a rats' @$$ how it actually does as long as they making profit off the shares.

But regarding the decline in PC sales, there's not much any company can do in general. More people moving to mobile, and desktops are mostly for enthusiasts that would likely build their own anyways.
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The thing is, Lenovo is making a greater profit year over year and increasing their market share. At least according to them, they are one company that can do something about it. :D
 
What's Lenovo's secret? That they are still shipping PCs with Windows 7?
 
BladeVenom said:
What's Lenovo's secret? That they are still shipping PCs with Windows 7?
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All companies are still selling Windows 7 PC's. However, Lenovo also figured out how to sell Windows 8 very well instead of simply pointing fingers and playing a ridicules blame game. (That is certainly not all they have done but it is one them for sure.)
 
"We lose only a small amount on each transaction but hope to make up for it in volume."
 
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