Computer maker Dell's fourth-quarter profits plunged 33 per cent due to weak sales of laptops and notebooks.
Dell said it earned $673 million, or 30 cents per share, in the quarter ended February 2nd, compared with $1.01 billion, or 43 cents per share a year earlier. Revenue fell 4 per cent, to $14.4 billion.
Analysts had expected the PC maker to earn 29 cents per share in the most recent quarter, according to a survey by Thomson Financial.
Most glaring was the revenue shortfall in mobility products and desktop PCs, which combined, account for 58 per cent of Dell's revenue.
Mobility products, which includes notebook computers, fell 2 per cent to $3.8 billion despite a 2 per cent increase in units shipped. Desktop PCs saw an 18 per cent decline in units year-over-year - despite the launch of Microsoft's new Vista operating system.
Analysts speculated that Dell's direct-sales model, which allows business and consumers to buy equipment directly from the company, is no longer the best way to sell products, especially portable, personal devices like notebooks.
Shifting tastes mean many consumers want to pick up and examine notebooks before they buy one, analyst Tim Bajarin of Creative Strategies said.
Dell still faces an unresolved federal accounting investigation, customer service complaints, several shareholder lawsuits and stiff competition from rivals.
AP