Dell disappoints with third-quarter revenue slip

The news: Dell Technologies' revenues have slumped after a spike in demand for AI-supporting servers was unable to make up for weak corporate demand for personal computers.

The numbers: Dell posted revenues of USD22.3 billion ($33.7 billion) in the third quarter, down 10% year on year and missing analysts' estimates of USD23 billion. Servers and network revenue grew 9% to USD4.7 billion, driven by demand for AI-optimised servers. Chief financial officer Yvonne McGill believes PC sales will decline in the "low single-digits sequentially," Bloomberg reports.

The context: Demand for personal computers has been weak in the aftermath of COVID-19 pandemic peak. Last week Hewlett Packard also posted tepid results, but diverged from Dell by posting a steeper-than-expected drop in server sales. According to an IDC report, global PC shipping volumes fell 7.6% in the third quarter year on year, but increasing shipments in the past two quarters indicates the market has passed the worst of the trough.