Dell Facing Price Pressure On Servers and PCs

Dell Technologies is cutting prices in the face of steep competition across multiple product lines. The company notes that competition was a pressure on margins in 1Q. CEO Michael Dell says that the downcycle in personal computers has made for strong competition, with major promotions from the holiday season continuing into 1Q. He also notes that in AI servers, where sales are booming, the company is not the price leader–and those offerings tend to come with lower margins. “We’re not the one running the price down,” he says. “We are again getting a premium for the value that we’ve generated or created in our products.” Dell shares fall 19% post-market.

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