Profits fell to US$679 million for the three-month period ending 1 February, despite a US$1.5 billion rise in quarterly revenue from US$14.5 billion to US$16 billion.
Year-on-year laptop revenue rose by almost a quarter, while servers, data storage hardware and desktop PCs all notched up two per cent increases.
Dell warned in a statement that its results could be "adversely impacted by more conservative spending by its customers".
Economists believe that the world's second largest PC manufacturer is more exposed to a downturn than its rivals HP and IBM because of a greater dependence on the US market where spending on technology is expected to slow.
Dell quarterly profits lower than expected
By Guy Dixon on Mar 3, 2008 2:48PM