Intel! China! Sliding enterprise spending! Dell cuts forecasts by $1.2bn to $2bn for fiscal '20

Dell has lopped more than $1bn off its revenue estimates for the current fiscal year on the back of Intel's protracted CPU shortages, continued weakness in the Chinese economy and enterprises tightening their belts. The Texan hardware-maker said it expects full year sales to come in between $91.5bn and $92.2bn – way down on …

[Duncan Macdonald]

Very low profit margin

To only make $552 million on sales of $22.8 billion - a profit margin of 2.4% implies that they are being squeezed by the competition and are no longer able to make good profits on hardware. The VMware division was responsible for the majority of the profit ($717 million before its share of central costs).

(These figures use GAAP - as usual the non-GAAP figures look better.)

[Anonymous Coward]

If only AMD could have had those 7nm Ryzen laptop chips out sooner, it really would have Intel on the run in all fronts.

[Anonymous Coward]

Patience...it has been planned for Q3 2020.

The nature of modern laptops (heavily customised motherboards, limited selection of components compared to PC's, power/weight/heat constraints and generally one base model per type per year) means that putting a newly released CPU architecture on a new process node into the current years laptops is risky, even Intel avoid it where possible.

That combined with AMD's ambition to put lots of cores and a relatively powerful GPU into laptops means the additional process maturity and understanding of how the CPU behaves in the real world means you are less likely to get stuck with a lot of very expensive paperweights.

[Pier Reviewer]

Yahoo!

I’m confused. What’s it got to do with Yahoo?

[Grooke]

Re: Yahoo!

You beat me to it!

[IGotOut]

Can some cut the article down?

Cut out the management speak for me and leave the remaining sentence or two I can be arsed to read.

Thanks

[Anonymous Coward]

Re: Can some cut the article down?

We want more money!

People bad, should buy more computers!

Intel bad, make more chips!

China bad. Can we be friends again?

[a_yank_lurker]

Not Surprised

Other than devices physically wearing out to the point it is easier to replace than fix there is no real pressure to get new kit for anyone. Once businesses figure out their refresh rate can stretch out more the last bastion of major sales will slow down. Nothing really surprising. And this is a problem all devices face, no real need to replace older kit to run the latest and greatest for most. So older devices can continue to soldier on for a couple more years before being replaced. Dell, et. al. might claim it is due to various other factors which might be partially true but it ignores the elephant in the room, there is no technical need for most kit to be upgraded because of some software being used.