Dell Sees 63% Income Drop

Dude, you’re gettin’ a downturn. Dell’s income fell 63 percent in Q1, from $784 million to $290 million. Stocks are slightly above analyst expectations, but revenue is slightly below. Chairman and CEO Michael Dell speaks of a “powerful replacement cycle, with virtualization and managed services playing larger roles in what customers want and Dell provides.” That’s corporate jargon for “people are doing everything on the Internet and no longer want to pay for products they don’t need.” Revenue even dropped in the “mobile products” category, which includes laptops, even as laptop shipments rose 32 percent. That’s the netbook craze you’re seeing right there. The plan is to improve profit margins over time — though it’s not clear how — and get into more retail stores. [via ComputerWorld]