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Dell Technologies Q2 2019; Strong PC Sales, But Hyperscale Trouble In China

Dell Technologies has posted a strong second quarter which saw PC units bring in record revenue.

The firm’s net income was $4.5 billion (£3.6 billion), with PC Unit sales dominating, as the company delivered revenue of $11.7 billion; up six percent on-year.

Commercial revenue also saw strong growth of 12 percent year-on-year, totalling $9.1 billion. This was driven by double-digit growth in commercial notebooks, workstations and desktops.

Consumer revenue for the firm is down by 12 percent and stands at $2.7 billion (£2.2). Dell say this is a result of the company prioritizing a commercial mix in the higher end of the consumer PC market.

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Dell Technologies Q2 2019 Sees Grwoth in VMware

VMware income continued to grow as its business unit reported revenue of $2.5 billion, a rise of 12 percent, operating income for VMware totalled $762 million.

Dell Technologies Q2 2019

Jeffrey Clarke Vice Chairman, Products and Operations noted that their Unified Workspace offering which delivers personalised devices directly to the end-user, pre-configured and preloaded with all the applications and security features they need, is helping to push sales in that sector.

He commented that: “With VMware’s acquisition of Carbon Black, Unified Workspace will only improve at a comprehensive intrinsic security portfolio for the multi-cloud world and for modern applications and devices.

“As you can see we are delivering on our promise to innovate across Dell Technologies to create the future of technology infrastructure from the cloud to the edge, while dramatically simplifying the customer experience.”

However, is not all rosy for the firm as servers and networking revenue were down by 12 percent, coming in at $4.4 billion in revenues. The global server market is ‘softer than anticipated’ said Dell, adding that the most pronounced impact of this can be seen in the Chinese market.

Jeffrey Clarke: “What we have generally seen with that, that the hyper scale business in China is that it tends to be very transactional. Where you’re getting that business is rebid every quarter or every half year. And so — and at the — given that pattern and what we’ve seen, we chosen not to participate in it. And if that’s the pattern that continues — you will see us continue to not participate in it.”

“As it relates to China, the business that we’ve essentially chosen do not participate in this year has generally been in the hyper scale server space where the pricing dynamics have not made a lot of sense to us.”

“It’s not a lot of interest to us at this point in time.”

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CBR Staff Writer

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