Dell originally had warned that the economy for technology was slowing down some in Europe and Asia. But the major computer manufacturer now says things are also slowing down here as well. Dell also indicates that businesses are also slowing down on the purchases they make. In this article from Fortune on Cnn Money it also states that:
Dell shares tumbled 10% to a new seven-year low after the company gave its latest grim assessment of the business climate. Outlining the areas of weakness, Gladden pointed out that in the U.S., spending by small and medium-sized businesses is down, and the financial sector, currently in a credit crisis swoon, was a bit challenging. “There’s not a lot of IT spending going on in the financial businesses,” Gladden said.
Overall big business spending, which accounts for about 80% of Dell’s revenue, was “mixed but weaker than we expected in the aggregate,” Gladden said.
Internationally, the U.K. remained a tough environment, Germany had been solid but turned weak in recent weeks and sales in China, which had been slow during the Olympics, had not snapped back as expected, said Gladden.
Which is not very surprising. With the US economy slowing down it was just a matter of time before technology got hit. Also there may be less spending on IT at some financial institutions such as Fannie Mae, Freddie Mac, Lehman Brothers, and others that fall by the way side. 🙂