Dell optimistic despite 23 per cent profit decline

Michael Dell believes businesses will start buying again next year

Dell chief executive Michael Dell has said that the technology market is starting to recover, and that demand for IT equipment is rising.

The company's second-quarter results show profits down 23 per cent, but Dell said that this was less than expected. He insisted that the second half of the year will prove much more profitable, and that businesses will start buying again next year.

"If current demand trends continue, we expect revenue for the second half of the year to be stronger than the first half," he said.

"We are expanding our capabilities in enterprise technology and services, and investing in our core business to distinguish Dell with customers and in operating performance."

Dell reported a 10 per cent rise in PC shipments during the quarter, and said that revenues rose three per cent due to price cutting. Combined revenue from servers and storage was up seven per cent.

While there are signs that consumer confidence is rising again, Dell said that sales to corporations fell 32 per cent compared to this time last year, while consumer sales were down only nine per cent.

However, the company is expecting a sales boost in October when Windows 7 launches, since many companies had held off investing until Windows Vista has been retired.