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Dell's dismal 1Q illuminates PC maker's challenges

May 16, 2013

SAN FRANCISCO -- Dell's financial decay worsened during its latest quarter as the company slashed its personal computer prices in response to the growing popularity of smartphones and tablets. The dismal performance announced Thursday provided the latest evidence of a technological shift that is making it difficult to sell laptop and desktop machines. Until recently, consumers had regularly replaced machines with faster ones every few years. The money is going instead to powerful, more convenient mobile devices such as phones and tablets. PC makers have had to cut prices sharply, obliterating their profit margins.

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