What Dell should do1 min read

The growth engine that Dell once was is sputtering. The degree of its troubles was made plain—yet again—on July 21, when the company said this quarter’s earnings would fall far short of analysts’ forecasts. Sales won’t meet expectations either.

It was the fourth time Dell (DELL) said it wouldn’t meet quarterly earnings or sales forecasts since the beginning of last year, and investors were incensed. Some registered dismay at the company’s annual shareholder meeting in Austin the same day (see BusinessWeek.com, 7/21/06, “Dell’s Dull Meeting”). Dell shares dropped nearly 10% to $19.91, the lowest level in almost five years, and dragged shares of other computer makers, including Hewlett-Packard. The rout left the Nasdaq at a 14-month low.

Businessweek  has more on how Dell could revive its sagging fortunes.