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February 19, 2013
17:48 EDTDELLDell sees market competitiveness and margin pressure continuing in 2013
On Dell's (DELL) Q4 earnings conference call, the company anticipated continued margin pressure and market competitiveness in the coming year, and stressed the importance of executing on its more than $1B in cost initiatives. Management said the consumer business continues to be challenging due to growth in tablets and in low value desktop and notebooks. Business in the federal space was also seen as difficult going forward due to constrained government spending. According to Dell, China has begun to stabilize, but Brazil and India remain weak due to currency issues. Europe was seen as "relatively stable." Management believes there is a broad Windows 7 based refresh that will continue to play out into 2014 as approximately 40% of the corporate install base for PCs running XP or Vista needs to be upgraded.
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