Dell shows off new 7-inch tablet

SAN FRANCISCO Thu Sep 23, 2010 12:46pm EDT

1 of 4. Dell founder and CEO Michael Dell displays a Dell tablet computer during his keynote address at Oracle Open World in San Francisco, California September 22, 2010.

Credit: Reuters/Robert Galbraith

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SAN FRANCISCO (Reuters) - Dell Inc Chief Executive Michael Dell showed off a new seven-inch tablet and said the computer maker is on track to bring in more than $60 billion in revenue this year.

Dell appeared on stage at the Oracle OpenWorld conference in San Francisco on Wednesday with the new tablet, which appeared to run on Google's Android software. But he declined to provide any details about the device.

The company released the Streak, a five-inch tablet, last month. Dell said the Streak, which is currently only available through the company's online store, will be available at Best Buy stores next month.

Dell also said the company's revenue has grown about 20 percent over the past two quarters, and "it looks like we'll probably do that again this quarter as well."

Analysts expect Dell to report revenue of $15.8 billion in its fiscal third quarter, which ends in October, according to Thomson Reuters I/B/E/S. That would be 22 percent higher than a year ago.

Wall Street expects Dell to post revenue of $62.4 billion for the current fiscal year, which ends in January.

TABLET PUSH

Dell executives have previously said the company planned to launch tablets in larger screen sizes.

The Streak, which runs on Android and doubles as a smartphone, costs $549.99, or $299.99 with a two-year contract from AT&T.

Dell is the world's No. 2 PC maker, according to industry tracker IDC, but has been expanding its product portfolio, with an emphasis on mobile devices. Apple's iPad has set the standard for tablet computers.

A slew of tablets has hit the market or is expected to in the coming months, including offerings from Samsung, Hewlett-Packard and Toshiba.

BMO Capital Markets expects tablet sales to top 40 million units in 2011 and hurt notebook and netbook sales.

Dell's shares fell 1.8 percent to close at $12.38 on the Nasdaq.

(Reporting by Gabriel Madway; Editing by Derek Caney, Maureen Bavdek and Steve Orlofsky)

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Comments (2)
hairy2xs wrote:
hmmm – they made 60 billion, they want to sell this for 549.00, it probably costs 20 to make. this is how they had profits so high

Sep 23, 2010 1:40pm EDT  --  Report as abuse
Bhawar wrote:
Regarding the Heating issue the VP just shared. I find it ridiculous that they had to get customer feedback (via tweeter) for the Product, Support and Designers to agree and acknowledge the issue. Why did the testing or design engineers NOT catch this before hand? I have seen many Dell video’s showing durability of products. This info just proves not enough and appropriate testing takes place.

Sep 23, 2010 2:13pm EDT  --  Report as abuse
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