Dell shares get boost from strong earnings report
Dell shares up nearly 10 percent on report of profit, revenue jump in fiscal 1st quarter
After Dell reported an incredibly high raise in trading ( up to 9.9 %), investors are trying to figure out if it is just a short term wonder or "the proof that the founder and CEO Michael Dell's turnover plan is working." (By David Koenig, AP Business Writer)
According to turnover plan Dell concentrated on the Asian market during the first quater of the year. Thus notebook shipment only in Asia jumped 43 % comparing to the last year. Revenue rose 19 % in Asia, 15% in Europe. Thus Dell has become a cumpany number two after HP in worldwide PC shipments, but still leads in the USA.
Machael Dell says that "strong Asia sales were partly due to a 140 percent surge at 1,800 stores in China that sell Dell machines. By early August Dell will be in 3,500 Chinese stores."
(By David Koenig, AP Business Writer)
(By David Koenig, AP Business Writer)
Meanwhile, some skeptics say that Dell's success in the first quater job was due to weak dollar and job cuts. Currency rate added 3 to 4 percent to total revenue and the strong cost resulted in part of cutting 3700 jobs. Also Dell lost good positions in retail sales which used to give the winning positions in prices.
It really takes an effort for investors which one of those thwo is working now- "one period luck" or Dell's turnover plan.
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