Dell revenue growth slows on strong dollar, China lockdowns

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Dell Technologies posted its slowest revenue growth in six quarters, as a surge in the dollar and COVID-19 flare-ups in major market China offset a jump in its enterprise-focused business.

The greenback surge has this year eaten into the earnings of technology firms from Microsoft Inc to Apple, compounding pressure from a drop in consumer spending on electronics such as personal computers and smartphones.

Dell's revenue rose 9 per cent to US$26.43 billion in the quarter to July 29 and was roughly in line with market expectations, according to Refinitiv data.

Consumer revenue fell 9 per cent, echoing weakness seen at Intel and Lenovo Group as demand weakened after a pandemic-fueled boom and decades-high inflation prompted consumers to prioritize essentials.

But orders from businesses gearing up for the hybrid-work era pushed Dell's commercial revenue up by 15 per cent to US$12.1 billion.

The storage and servers-focused unit also posted strong growth.

Net income from continuing operations fell to US$506 million, from US$629 million a year ago.

Excluding items, Dell earned US$1.68 per share.