European Internet sales now contribute 36 per cent of the company's revenue for the region, its UK boss said today.
As vnunet.com reported yesterday, Dell Computer's third quarter turnover rose by 41 per cent to $6.78 billion with profits before charges of $194 million for the acquisition of Convergenet Technologies at $483 million or $0.18 cents per share. This time last year the company earned $384 million or $0.14 cents per share.
Brian McBride, vice president UK and Ireland confirmed today that the company shipped 59 per cent more units in the third quarter than last time. Europe, Middle East and Africa (EMEA) contributed 21 per cent of worldwide revenue, $1.5 billion, up 22 per cent from this time last year.
McBride said that Dell remains the dominant PC supplier in Ireland with 78.8 per cent marketshare in a market that has slowed dramatically, and it occupies number one slot in the UK with 19.2 percent share.
Worldwide, Dell is generating around $35 million revenue per day from its Internet business, totalling 43 per cent of overall revenue, with Europe contributing 36 per cent of its revenue through online sales.
The recent surges in memory prices have had an adverse effect on Dell and others, and McBride said that prices should normalise this quarter but he does not expect a speedy return to the cheap memory prices of three months ago.
"Because of our direct order model we felt the effects first but expect to come out of it first," said McBride.
He added: "We have strong expectations for the fourth quarter...[and] we expect to expand our European business by doing more via the phone and Internet."
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