Dell expands as PC sales contract

Dell continues to look strong in a weak market for PCs and servers, reporting 20 per cent year-on-year third quarter growth in its sales of PCs, storage and server products.

The direct vendor added it is the only top 10 computer provider to gain market share over the three-month period, and at the same time it grew profit margins - just, from 17.5 to 17.6 per cent - because of manufacturing efficiencies and lower component prices.

Overall, Dell reported Q3 net profit up 36 per cent at $674m on sales revenues of $8.26bn, up 10 per cent.

Founder and CEO Michael Dell said the company is benefiting from healthy demand for laptops and sales of higher-end, enterprise products, an area which is newer to the Austin, Texas-based vendor.