Dell Woes

By: Associated Press
By: Associated Press

Analysts say Dell still has the ingredients for success -- but desperately needs some adjustments.

It wasn't too long ago when Dell was riding high on the success of its patented direct-sales model to consumers and businesses.

The Round Rock computer maker boldly predicted it would soon swell from 50 (b) billion dollars in revenue to 80 (b) billion dollars.

But then the PC market slowed, profits tumbled and share prices took a hit. Complaints began to mount about its customer service.

Then came last week. Dell issued the largest electronics recall in US history, reported dismal second-quarter earnings and acknowledged a probe by federal investigators for unspecified accounting issues.

Analysts say there weren't enough details to know if the probe is cause for concern.


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