Dell recently reported net income of $337 million in its latest quarterly report– a 54% decline from the same period last year. Its revenue was down 15%, and analysts were basically disappointed in its performance all-around.

In other words, this was a good day for Dell:

“We are seeing improvement in overall underlying I.T. demand [...]]]>

Dell recently reported net income of $337 million in its latest quarterly report– a 54% decline from the same period last year. Its revenue was down 15%, and analysts were basically disappointed in its performance all-around.

In other words, this was a good day for Dell:

“We are seeing improvement in overall underlying I.T. demand that is continuing into the fourth quarter,” Michael S. Dell, the founder and chief executive of Dell, said in a statement.

Rivals, including Hewlett-Packard, IBM, and Cisco have managed to deliver earnings surprises in recent weeks, to the extent that many observers believe the tech sector is finally recovering from the worst effects of the Great Recession.

But not Round Rock.

Dell has become much more dependent upon business investment than its peers. Intriguingly, Dell has overtly chosen to purse the path to profitability rather than on retaining share:

Throughout the recession, Dell executives have said it makes sense for the company to focus on keeping profits high even if that means losing market share to rivals like H.P. and Acer. Dell planned to keep its balance sheet as strong as possible during the difficult times and then try to capitalize on the recovery, the executives said.

The problem is that this risky strategy has led analysts to speculate on just how Dell–which has suffered from a string of quality and customer service crises in recent years–plans to recapture market share once the recession is behind us.

via Though It Sees the Clouds Breaking, Dell’s Profit Falls 54% – NYTimes.com.