News: 'We believe in India's potential' - Dell

(PTI 23/07/2006) New Delhi - World's largest PC maker Dell Inc has reiterated its confidence in the strong potential of the Indian market, notwithstanding the downward revision to the company's already sluggish forecasts for the second quarter.

Dell's share price plunged nearly 10 per cent on Friday after the company said it expected lower revenue and earnings per share for the June quarter due to "aggressive pricing in a slowing commercial market worldwide".

The company said in a regulatory filing with the US Securities and Exchange

Commission that it expected Q2 FY07 revenue at approximately $14 billion and EPS of $ 0.21-0.23, which were below the analysts' estimates for the quarter.

However, the company's vice president for corporate group communications, Bob Pearson, said from Texas the company was making right decisions to provide value to its customers and these efforts would boost its shareholder value in the long term.

Pearson said the company would continue to expand its business throughout the world and it expected to end this year with the broadest product line in its history.

"We believe in the potential of the India market for Dell and our customers," he added.

The company has witnessed a sharp plunge in its market valuation in the recent past on the back of intensifying pricing pressure in the personal computer market worldwide.

Dell's share price has dropped more than 50 per cent over the past one year, while wiping out nearly $ 50 billion from its market capitalisation.