Dell's Sales Get by Target

"At the end of the day, they're [Dell] still losing share," Wu says, although he credits Dell's management with various improvements, such as taking advantage of low component costs, something they appeared unable to do a year ago.

Dell said it planned to reduce its headcount and improve "front-line productivity," among other initiatives designed to reduce operating expenses. In June, Dell announced plans to slash 10% of its work force.

While Dell did not provide specific financial guidance for the current quarter, it noted that near-term results could be adversely affected by a slower decline in component costs during the second half of the year.

Dell said it does not expect to resume its share buyback program until November, when it files its delayed fiscal 2007 annual report.

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