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Last Updated: Friday, 12 November, 2004, 06:13 GMT
Laptops drive Dell profits boost
Dell laptop
Portables are driving Dell's continued sales growth
Computer giant Dell has boosted its profits once more as lower component costs have helped its bottom line.

The firm, the biggest PC maker in the world, said its net profit for the three months to September was $846m (457m), up 25% on the year before.

Sales rose 18% to $12.5bn, and Dell said it would now reach $60bn in annual sales by next year - a year ahead of the timetable it had set itself.

Market share grew too despite slowing growth in the PC market, Dell said.

The results were released after the close of business on the New York Stock Exchange, but after-hours trading saw its shares rise 1.9%.

Sector sales

The main driver for the firm's performance was the continuing popularity of laptop computers.

Unit sales were up 35% on the year before, with desktop machines up 18% and servers - designed to sit at the heart of networks - up 19%.

Consumer electronics was also doing well, up 37% in revenue - although the sector supplies less than a sixth of Dell's sales overall.

The rise in market share and sales meant new staff for Dell.

The firm said it took on an extra 3,000 workers during the third quarter.

Most, it said, were in call centres and were part of a push to bring customer service in-house.

Dell, like other computer manufacturers, has been hit by complaints that outsourcing has meant patchy technical support for customers.


SEE ALSO:
Dell warns on fire-risk laptops
08 Oct 04 |  Business
Dell gets new chairman
16 Jul 04 |  Business
New demand boosts Dell profits
13 May 04 |  Business
Michael Dell hands over CEO role
04 Mar 04 |  Business
Dell records strong holiday sales
12 Feb 04 |  Business
Dell's diversification pays off
13 Nov 03 |  Business


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