Deals
Dell's EMC Deal Hits Hard Reality of Rising Costs, Cloud Shift
- Company paying more for memory and display parts for tech gear
- Facing pressure in cloud from Amazon Web Services, Microsoft
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About six months after completing one of the biggest mergers ever in the technology industry, Dell Technologies Inc. is grappling with changing tastes in hardware and rising component costs, underlining the challenges of the EMC Corp. acquisition.
In its fiscal fourth quarter, Round Rock, Texas-based Dell reported sales of $20.1 billion and an operating loss of $1.7 billion. During a call with analysts Thursday, Chief Financial Officer Tom Sweet said the company is paying more for some memory and display parts that go into its big lineup of tech gear.