Dell's travails signal rivals' gains: analysts

Iria · May 10, 2006, 05:14 AM

Source: Reuters
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SAN FRANCISCO (Reuters) - Dell Inc.'s pain may reflect its rivals' gains.

Dell, the No. 1 PC maker in the world, is seen as the trendsetter in the rough-and-tumble industry, but its profit warning late on Monday suggests it may now be following rivals including Hewlett-Packard Co., Lenovo Group Ltd. and Acer Computer International.

The company said first-quarter earnings fell short of its forecast as it lowered prices to boost revenue growth, which has slipped for the past year amid growing competition.

Dell -- founded by Michael Dell, 41, in a University of Texas dorm-room in 1984 -- grew to be the industry leader as it bypassed retailers and sold computers directly, and more cheaply, to customers and promised better service. But now, rivals are paying less for components than they had been, are lowering prices and are gaining market share at Dell's expense, analysts said.

May 10, 2006, 05:14 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	Dell's travails signal rivals' gains: analysts Source: Reuters __________ SAN FRANCISCO (Reuters) - Dell Inc.'s pain may reflect its rivals' gains. Dell, the No. 1 PC maker in the world, is seen as the trendsetter in the rough-and-tumble industry, but its profit warning late on Monday suggests it may now be following rivals including Hewlett-Packard Co., Lenovo Group Ltd. and Acer Computer International. The company said first-quarter earnings fell short of its forecast as it lowered prices to boost revenue growth, which has slipped for the past year amid growing competition. Dell -- founded by Michael Dell, 41, in a University of Texas dorm-room in 1984 -- grew to be the industry leader as it bypassed retailers and sold computers directly, and more cheaply, to customers and promised better service. But now, rivals are paying less for components than they had been, are lowering prices and are gaining market share at Dell's expense, analysts said.