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Business Briefing / Computers

Dell expects higher costs, lower profit

July 14, 2009|Times Wire Reports

Dell Inc. said its profitability might suffer this quarter because it was paying more for parts and wouldn't pass along those costs to customers.

Competitive pricing and the higher cost of components will cause a "modest decline" in gross margin in its fiscal second quarter ending July 31, the Round Rock, Texas, company said. Demand has stabilized and sales probably rose from the first quarter, it said.

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