Direct vendor Dell achieved strong turnover in the US during its first fiscal quarter, but did not do as well in Europe, it was revealed last week.
Shaking off a couple of rocky quarters, Dell bounced back furing its first quarter ended 28 April, reporting turnover up 31 per cent to $7.3bn (£4.6bn), compared with $5.5bn in the same quarter a year earlier. Dell's profit also rose, increasing from $434m to $525m.
"The fundamental competitive advantages of our customer-focused direct business model are widening. That's particularly true in the server and storage products at the heart of the Internet infrastructure," said Michael Dell, chief executive at Dell.
Dell's gross margins as a percentage of its turnover were 20.5 per cent, compared with 19.2 per cent in the fourth quarter of 2000. The company cited lower prices for PC memory modules for this percentage rise. But Dell said that it had spent more on its strategy to increase its share of the business computers market.
Sales of Dell's workstations and notebook PCs, as well as storage products and Web servers for e-commerce, rose to 48 per cent of total system sales, Dell said.
Dell added that sales were strong in north America and Asia, growing 35 and 45 per cent respectively, but its European business was still not as good as it hoped, growing by only 17 per cent.
In the previous two quarters, Dell issued profit warnings ahead of its results and lowered expectations for sustained turnover growth to the low 30 per cent range from above 50 per cent.
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