Dell boosts guidance on strong hardware sales

Dell Computer has raised its third-quarter revenue forecast, citing stronger than expected server and storage system sales.

Dell expects to post $US9.1 billion in revenue for its third quarter, to November 1. The company had forecasted revenue of $8.9 billion for the period.

Dell competes against Hewlett-Packard, IBM and Sun Microsystems in the server and storage markets. Although all of these companies have been hit hard by a slowdown in IT spending, Dell said it shipped a higher volume of server and storage systems than previously expected, according to the statement. Dell has gained market share during the economic downturn, particularly with lower-end systems.

If Dell hits its $9.1 billion revenue target, it would mark a 22 per cent year-on-year increase.