Dell seems to be still having their problems but this time it is the way they were reporting their sales to meet their financial goals. It seems that from the years 2002 to 2006 there may have been some shady business practices that have now come to the attention of the SEC. Though Dell is promising to remedy the situation by having an outside agency audit their accounts, this current situation can only add to the recent problems that Dell seems to be having.
In view of recent scandals by companies such as Enron and Worldcom, this recent disclosure can only hurt consumer confidence in the once popular company. Though Dell representatives are saying the financial missteps and reporting procedures are being corrected, one would have to believe that this can only tarnish their image. While Dell continues to struggle, one wouldn’t be surprised if the company slipped in sales to the #3 spot with Acer aggressively marketing their wares against the once mighty Dell corporation.
During the past year Dell has started to listen to their customer base and is trying some novel new approaches to bolster sales. Introducing Ubuntu Linux systems, changing their color schemes on their laptops and basically revamping their product line, it seemed Dell was on the right track in making a comeback. Though there was some hint at the beginning of 2007 of the SEC investigation, no one really knew how deep the financial misreporting was going to be. As HP continues to extend their lead over Dell, one can only wonder how much of an impact this latest investigation will have.
What do you think? Will this latest revelation hurt the computer company even more?
[tags]dell, financial, statement, sec, sales, accounts, [/tags]