19 May 2006 – Austen (TX): Aggressive price competition in the PC market has hit Dell’s Q1 results.
The firm reported earnings of $762 million, or EPS of $0.33, compared to earnings of $934 million, or EPS of $0.37, a year earlier. Revenue rose six per cent to reach $14.2 billion.
Dell CEO Kevin Rollins said: "The competitive environment has been more intense than we had planned for or understood."
Dell also said it would begin using chips from Advanced Micro Devices in some of its high-end servers – the firm previously exclusively used microprocessors from Intel – and said it would restructure operations in a move that will cut costs by $3 billion this year.