and also due to the strong competition in the server markers industry.
Even though there currently is a high demand for Dell-optimized servers powered by artificial intelligence, that are capable of operating with large AI workloads, the PC sales market is facing strong competition from its rivals and also a lower consumer demand during an unpredictable economy.
According to Dell PC company in a post-earnings call, more enterprise customers are trying to be careful with their overall IT and computer consumption due to the fact that the recent economy has forced consumers to spend less than expected on IT equipment.
So, the company expects that Dell's revenue for Q4 will be between $24 billion and $25 billion, while the average estimate of analysts is about $25.57 billion, as stated by LSEG.
"The entire PC market is in a transition period and moving towards on-device AI functionality which still isn't that defined and is expected to solidify in 2025,", the senior analysts for AI and Tech at Emarketer stated.
It should be mentioned that the revenue from Dell’s Client Solutions Group, which also includes the PC sales division of the company, summed up at $12.13 billion, which is below the previously anticipated $12.43 billion. Also, its direct competitor, HP, has also experienced a lower first-quarter profit prediction.
Now, various investors are monitoring closely all the Dell gaming PC costs after the company’s warning back in May about the increased expenses in building servers powered by artificial intelligence and competitive pricing have a higher chance to impact its limits.
"Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%,", Jeff Clarke, Dell’s Chief operating officer stated recently.
Even more so, the revenue from Dell’s Infrastructure Solutions Group, which includes its AI servers business, managed to increase by 34% up to $11.37 billion, exceeding expectations. But, Dell reported a total third-quarter revenue of $24.37 billion, lower than the previous forecast of $24.67 billion.
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