Poor Ultrabook Sales See Manufacturers Opting for Low Cost Machines

According to multiple reports and sources, suppliers of ultrabooks are facing a lot of issues with profitability and market. As a result, many manufacturers are expected to turn to low-cost designs to make up for it. According to an anonymous CNET source that speaks directly to ultrabook suppliers, "The ultrabook adoption during the holiday season was ugly." Before you go jumping to conclusions, this source was only talking about one ultrabook manufacturer specifically.

That being said, the ultrabook market for all suppliers is still facing challenges. According to the same source, "You've got a down market on the eve of a new operating system (Windows 8, obviously) at a price point that's fairly robust (meaning high)." On top of that, Acer, one of the high-profile ultrabook vendors, stated that it is currently not making a profit on lower-end models according to a recent report in The Verge.

A Tech Travel Agent can get an ultrabook rental to you within 24 business hours in over 1000 cities worldwide.

The company's Aspire S3 ultrabook has been generally priced at $899 but could drop as low as $799. Acer's Chairman also stated back in December that ultrabook sales should be somewhere between 250,000 and 300,000 in Q4. Other top vendors, like HP and Dell, have just started selling ultrabooks, which makes their success or failure hazy.

However, a recent report from Asia has claimed that poor sales for vendors is forcing them to rethink ultrabooks altogether. According to a report in Digitimes citing industry sources, "Existing Sandy-bridge ultrabooks are too expensive." Many are speculating that, as a result, many ultrabook manufacturers will turn to thin laptops similar to ultrabooks that do not incur the high costs of current designs. Things like metal cases, expensive hinges and expensive solid state drives are what are keeping ultrabook prices high enough to dissuade potential buyers.

These new thin laptops are predicted to have prices in the $600 range and launch in Q2 2012, although that strategy could also backfire. Low-cost laptops, like the netbook, have yet to be widely accepted due to the fact that they were built from cheap chassis materials, had low-end components and lacked the performance power of other laptops. What this could mean for the laptop industry as a whole is still up in the air.

Source: CNET - As ultrabook makers seek stronger sales, some opt for low cost

Dell Computers Are a Green Choice

In today’s society, many are encouraged to ‘go green’ and help save our planet’s resources. These days our society is focusing on reusing, reducing, and recycling materials. Dell computers are a great choice for those who want to become more eco-friendly. There are many different things about Dell computers that qualify them as ‘green’.

One thing that qualifies Dell computers is what they’re made of. The company consistently finds new ways to incorporate recycled materials into their products, as well as less harmful materials. Much of the plastic used to make Dell computers is recycled material, as well as the plastic used in their packaging. They have also replaced many of the harmful chemicals used to produce their computers with less harmful and/or harmless materials. One major step they took was introducing more computers with LCD screens which reduce the usage of mercury.

Another great thing about Dell computers is the packaging that they come in. Besides using recycled plastic, Dell also uses bamboo when packaging their computers. The bamboo is biodegradable and is a natural, renewable resource. Bamboo also has a lot of tensile strength, which makes it ideal for packaging and protecting the computers.

Not only are the products that Dell creates eco-friendly, but also the way in which their products are manufactured. The company is one of the top five purchasers of renewable energy in the U.S. and is number one when it comes to the computer industry. Dell also strives to reduce their water usage. Many Dell facilities have installed more efficient water fixtures, as well as re-using water for landscaping irrigation after it is treated by on-site sewage treatment facilities. Dell also does not create any industrial wastewater.

Outside of creating and shipping their products, Dell is also eco-friendly in the fact that they have set up a partnership with Goodwill which encourages people to donate their old computer equipment, no matter what brand, in order to help people in economic crises. To find a drop-off center near you, click here. Dell has also partnered with The Conservation Fund and Carbonfund.org to help the Plant a Tree Program. This program uses donations to plant trees in areas that have been deforested in order to offset greenhouse gas emissions. If you would like to make a donation, you can do so here.

It’s clear that when it comes to going green, Dell has a lot to offer. They strive to continue making their company more energy efficient and eco-friendly in every way possible. To learn more about how Dell is making a difference in the environment, visit http://content.dell.com/us/en/corp/dell-earth.aspx.

Find out what is going on in the Tech Army World.



What are the Top 10 Money Making Missions?

What other companies have joined and what do they do?

How do I join the
Tech Army Organization ?

Cutting Costs Sees an Increase in Profits for Dell

Good news recently came out of Dell as the computer company reported that its net income for the last quarter nearly tripled as Dell benefited from lower computer component costs and growth in certain areas of its more profitable product lines.

Dell's shares rose 5% in extended trading, beating analysts' adjusted net income estimates but coming a bit short of revenue estimates. For Dell's first three months, which ended on April 29th, Dell earned $945 million, which equals about $0.49 per share, which was higher than the $341 million, $0.17 per share of last year.

If you exclude one-time items, Dell earned $0.55 per share which easily beat the numbers expected by Wall Street. Analysts polled by FactSet estimated adjusted earnings of $0.43 per share. Revenue rose only 1% to $15.02 billion from $14.9 billion last year, which was short of the predicted $15.4 billion. Product revenue remained the same at $12.1 billion with services revenue rising 6% to $3.0 billion.

Dell's consumer section, which accounts for nearly 20% of the company's revenue, dropped 7% to $3.0 billion as well. Consumer demand also fell more than anticipated and in an interview, CFO Brian Gladden attributed some of the cause to "the market for consumer PCs being saturated in developed countries." He also added that "while tablet computers are still a small portion of the PC market, there's clearly an impact for them on consumer demand for traditional PCs."

Revenue from large enterprises increased by 5% to $4.5 billion with revenue from small and medium-sized businesses increasing 7% to $3.8 billion. Public sector revenue, on the other hand, saw a decline of 2% to $3.8 billion. Dell saw the biggest gain in servers and networking. In this category revenue rose 11% to $2.0 billion. Sales of desktop PCs fell 8% to $3.3 billion with mobile PCs rising 3% to $4.7 billion.

Dell has been working hard to increase their proportion of server computers, data storage devices and technology consulting services sold. According to Dell, these areas are more profitable than the company's base PC business. However, compared with one year ago, most of Dell's product categories accounted for nearly the same percentage of revenue and computers for consumers, and businesses continued to make up over half of Dell's revenue.

However, Dell's gross margin, which is still an indicator of the efficiency of Dell's business, came in at 22.9% which was higher than the 20.4% expected by analysts from Reuters. Dell's strategy of focusing on more profitable areas of business and cutting back on lower-margin offerings is working extremely well according to Gladden.

Andy Hargreaves, an analyst for Pacific Crest, thinks that Dell's gross margin is "impressive" and stated that "Dell should be able to keep it up for now." Hargreaves also stated, "They do have the potential to sustain margins long-term, but in order to do so they have to drive toward more services-oriented businesses."

Taking a look at this current quarter, Dell is predicting that revenue will rise by a percentage in the mid-single digits over the first quarter, slightly faster than its seasonal 2% to 3% growth. Analysts are expecting somewhere around $16 billion. Dell continues to expect revenue to grow 5% to 9% for the full fiscal year which implies a total of $64.6 billion to $67 billion with analysts expecting around $64.4 billion.

Dell saw shares rise $0.86, or roughly 5.4%, to a total of $16.76 in extended trading. The stock finished regular trading down $0.10 to $15.90.

Source: The Associated Press - Dell profit jumps as computer maker cuts costs

Computers, Desktops, Laptops, Servers and the latest in Portable Tablet PCs are available from your computer rental company, Rentacomputer.com.

Talk to a Rentacomputer.com Tech Travel Agent Today!
Call Toll free 800-736-8772.

2011 Sees a Slip in Worldwide PC Shipments

Bad news for the computer industry has just recently been released. Thanks to weak demand for consumer PCs, growth for worldwide PC shipments showed a 1.1% decline from the first quarter of 2010 according to a Gartner's PC Quarterly Statistics Worldwide by Region program. Weak demand for consumer PCs was the primary inhibitor. However, despite the weakening of sales around the globe, the Asia Pacific region showed encouraging growth as PC shipments surpassed 28.2 million in the first quarter of 2011. This is interesting due to the fact that, statistically speaking, sales of consumer PCs usually do not show this much popularity or growth in the beginning of the year. The first quarter of most years is stereotypically slow for PC sales. Gartner also noted, however, that these shipment results indicate potential sluggishness and not a typical seasonal slowdown. Gartner pointed out that these figures are well below earlier predictions for a 3% growth in the first quarter of 2011. In response to different markets in Asia, Gartner said that consumer PC sales were also slow both in China and also in Taiwan and that they failed to attract customers during the celebration of Chinese New Year. Consumers in India were occupied by the Cricket World Cup and preferred to upgrade their personal PCs or buy a new TV rather than home electronics. In addition to that, PC shipments in Japan hit a decline of 13.1% in 2011's first quarter. According to Principle Analyst for Gartner Mikako Kitagawa, "Weak demand for consumer PCs was the biggest inhibitor of growth. Low prices for consumer PCs, which had long stimulated growth, no longer attracted buyers. Instead, consumers turned their attention to media tablets and other consumer electronics. With the launch of the iPad 2 in February, more consumers either switched to buying an alternative device, or simply held back from buying PCs. We're investigating whether this trend is likely to have a long-term effect on the PC market." Computer company HP accounted for 17.6% of worldwide PC shipments in the first quarter of 2011. HP also maintained the number one spot. Acer saw declining shipments of 12.2% and Dell reported a shipment decline year-over-year for the first time in six quarters. Lenovo continued to price products competitively in the consumer market as well as the professional market and enjoyed the strongest growth among the top vendors as a result. Source: PCWorld - Worldwide PC Shipments Slip in 2011

Projector Rentals Are Great for Business Meetings

Most business class projectors will do a good job displaying your PowerPoint presentation. If you have a small presentation group, a 2000 lumen LCD projector will be able to produce a nice and clear picture. For larger audiences you should consider a 5000 lumen LCD projector.