Growth in the personal computer (PC) industry during the first quarter is slower than market leader Dell Inc. expected, but the company anticipates growing much faster than the rest of the sector, just as it has in other times of turmoil, its CEO said.
In an annual briefing for Wall Street analysts, Chief Executive Kevin Rollins said most of Dell's growth over the next 3 to 4 years will come from non-PC businesses as its revenue rises to U.S. $80 billion annually from $50 billion.
Newer products for Dell, including storage, printers, and high-end TVs, can help insulate the number-one PC maker from boom and bust cycles, he said.
Mr. Rollins pointed to market research data that forecasts 10-percent growth in first-quarter global PC unit shipments, down from an average growth of 16 percent in the prior 6 quarters.
"As we have come into (the first quarter), it's become clear things are a bit slower (than last year), a little bit slower than maybe we had even thought," Mr. Rollins said, referring to the 10-percent forecast by research group IDC. "We are not worried about that," he added. "Otherwise, we would have taken our numbers down."
Earlier this week, Dell left its own revenue and outlook profit unchanged for its first quarter ending later this month, saying it expects revenue of $13.4 billion, up 16 percent from a year ago, and $0.37 a share in profit, up 32 percent. (Reuters)
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