Dell’s revenue growth hinges on enterprise hardware sales
As Dell Technologies continues to struggle with heavy decline in PC sales, green shoots are appearing in its servers, storage and networking business.
Although the company’s revenue for last year was recorded at $102.3 billion, up 1% year-on-year, fourth quarter revenue declined 11% to $25 billion. Dell’s commercial and consumer units were hit the hardest during the quarter, with revenue for those segments declining 17% and 40%, respectively.
However, revenue in the company’s infrastructure solutions group (ISG), which includes servers, storage devices and networking hardware, rose 7% in the fourth quarter. At $9.9 billion in revenue, the ISG unit drove in about 40% of overall sales for Dell during the quarter.