Dell Optimistic Despite Recall Uproar

The fatal problem with 4.1 notebook batteries notwithstanding, the PC maker's chairman points to positive indicators such as growth in Asia

With revenue warnings for four consecutive quarters, Dell Computer founder and chairman Michael Dell remains optimistic about the company's future.

Last month, the company warned that sales and earnings in its second fiscal quarter would fall below forecast because of pricing pressures and slowing demand for PCs. Industry analysts were expecting about US$14.2 billion in revenue, but Dell Computer only expects to record revenues of US$14 billion when it releases its financial results Aug. 17.

During a briefing with reporters here today, Dell said steps are underway to reverse the company's fortunes. The company chairman was in Singapore as an IDA Distinguished Speaker.

"We're focused on ensuring that we are providing a great experience to our customers, and making what we believe are the right investments to deliver a great set of products and the service behind those," he said.

Dell also noted that the company remains a market leader and is gaining share in the fastest growing regions in the world, including Asia. According to Steve Felice, president of Dell Computer Asia-Pacific and Japan, the computer maker has "taken over the number two spot in all of Asia."

"We're having significant growth in countries like Korea, India, Singapore, Malaysia, Thailand, and even in more established countries like Japan and Australia," Felice noted.

Despite its successes, Dell said: "That doesn't mean we are a perfect company with no challenges. We certainly do, and we're addressing those."

"We're seeing good progress with our customer experience initiatives and dedicated more than US$100 million specifically toward that," he said. "And the indications and metrics that we see, both internally and externally, point to improvement and steady progress."

Before it's here, it's on the Bloomberg Terminal.