Dell Technologies Inc. will further cut jobs this year in a bid to keep costs in check amid concerns that demand hasn't snapped back and AI-optimised server sales aren't as lucrative as other products.

Dell said a freeze on outside hiring, job restructuring and other moves will result in a "continued reduction in our overall headcount" in the fiscal year ending in February 2025.

It concentrates its efforts on extending the business of selling high-powered servers for artificial intelligence work. Investors have been thrilled by this new spigot of growth, sending the shares up 39 per cent this year through Tuesday's close, and landing the company a promotion to the S&amp;P 500 Index later this month.

Still, there's growing unease about how profitable the gear sold by Dell and rivals such as Super Micro Computer Inc. and Hewlett Packard Enterprise Co. will prove to be, since the servers require pricey computer chips from the likes of Nvidia Corp. In the last quarter, Dell said a higher mix of AI servers hurt margins, though the company did report improved profit versus the prior period.

The company’s better-known business, the sale of personal computers, has not picked up as much as expected after a two-year slump. Dell reported $12.4 billion in fiscal second-quarter revenue on Aug. 30, down 4 per cent from the same period a year earlier and slightly missing estimates. Sales of business PCs were little changed, while revenue from consumer-oriented PCs declined 22 per cent from a year earlier.

“We remain committed to disciplined cost management in coordination with our ongoing business transformation initiatives and will continue to take certain measures to reduce costs,” Dell said Tuesday in a regulatory filing.

The company would not comment beyond the filing.

In June, Dell cut jobs mainly in sales without revealing how many workers would be affected. The company took a $328 million charge for severance costs in the quarter. Dell said in February that it had about 120,000 full-time employees worldwide.

Dell Technologies Inc. will further cut jobs this year in a bid to keep costs in check amid concerns that demand hasn't snapped back and AI-optimised server sales aren't as lucrative as other products.

Dell Technologies Inc. will further cut jobs this year in a bid to keep costs in check amid concerns that demand hasn't snapped back and AI-optimised server sales aren't as lucrative as other products. Dell said a freeze on outside hiring, job restructuring and other moves will result in a "continued reduction in our overall headcount" in the fiscal year ending in February 2025. It concentrates its efforts on extending the business of selling high-powered servers for artificial intelligence work. Investors have been thrilled by this new spigot of growth, sending the shares up 39 per cent this year through Tuesday's close, and landing the company a promotion to the S&P 500 Index later this month. Still, there's growing unease about how profitable the gear sold by Dell and rivals such as Super Micro Computer Inc. and Hewlett Packard Enterprise Co. will prove to be, since the servers require pricey computer chips from the likes of Nvidia Corp. In the last quarter, Dell said a higher mix of AI servers hurt margins, though the company did report improved profit versus the prior period. The company’s better-known business, the sale of personal computers, has not picked up as much as expected after a two-year slump. Dell reported $12.4 billion in fiscal second-quarter revenue on Aug. 30, down 4 per cent from the same period a year earlier and slightly missing estimates. Sales of business PCs were little changed, while revenue from consumer-oriented PCs declined 22 per cent from a year earlier. “We remain committed to disciplined cost management in coordination with our ongoing business transformation initiatives and will continue to take certain measures to reduce costs,” Dell said Tuesday in a regulatory filing. The company would not comment beyond the filing. In June, Dell cut jobs mainly in sales without revealing how many workers would be affected. The company took a $328 million charge for severance costs in the quarter. Dell said in February that it had about 120,000 full-time employees worldwide.

Dell: Job cuts to continue due to margins under pressure

Dell announced a major chunk of layoffs on Tuesday (Aug 6) in a bid to shift toward AI products and services. The latest round of sacking is set to affect about 10 per cent of the workforce.

The exact number of employees set to face the brunt of the latest decision by the American tech giant has not been disclosed, but some estimate says the number is around 12,500 individuals. The restructuring will majorly affect the company’s sales teams, including long-standing employees.

The tech giant confirmed this development in an email to The Register, stating that it is "becoming a leaner company" through this reorganization.

Also Read |&nbsp;<a href="https://www.wionews.com/science-tech/elon-musks-xai-raises-6-billion-openai-develops-new-flagship-ai-model-726383">Elon Musk’s xAI raises $6 billion; OpenAI develops new flagship AI model</a>

The company says its restructuring involves merging teams and prioritizing investments in a bid to enhance innovation, value and customer service.

In an internal memo to employees, Bill Scannell, President of Global Sales and Customer Operations, and John Byrne, Global Channels President at Dell, discussed "streamlining layers of management."

They emphasized Dell's ambition to outpace market growth by leveraging "the value of modern IT and AI" for client organizations.

<h2>Who all are affected?</h2>

As per various reports, these layoffs will primarily affect managers and senior managers, some with over two decades of experience at the company.&nbsp;

One employee, speaking anonymously, told Business Insider (BI), “It was mostly managers, directors and VPs. They also hit marketing and operations. They combined organizations and also made the ratio higher for the managers. Now every manager has a minimum of 15 employees,” as quoted by BI.

Watch |&nbsp;Tech sector layoffs in 2024: Tech layoffs exceed 124,000 in 2024 as industry struggles

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Reports also said most employees affected by the layoffs, are expected to receive a severance package comprising two months' wages, plus an additional week for each year of service, up to a maximum of 26 weeks.

The severance package may also include potential partial bonus payouts. However, some long-term employees have expressed dissatisfaction over losing long-term incentives and stock options as part of this process.

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Amid multiple rounds of layoffs and backlash from ex-employees, Dell remains optimistic about its future, particularly with its new focus on AI.

Dell is also hopeful that a new generation of AI-optimized PCs will fuel upgrades.

"We aim to grow faster than the market by seamlessly meeting our customers and partners online, virtually or in person," Scannell and Byrne wrote in their memo.

(With inputs from agencies)

Dell announced a major chunk of layoffs on Tuesday (Aug 6) in a bid to shift toward AI products and services. The latest round of sacking is set to affect about 10 per cent of the workforce.

Dell announced a major chunk of layoffs on Tuesday (Aug 6) in a bid to shift toward AI products and services. The latest round of sacking is set to affect about 10 per cent of the workforce. The exact number of employees set to face the brunt of the latest decision by the American tech giant has not been disclosed, but some estimate says the number is around 12,500 individuals. The restructuring will majorly affect the company’s sales teams, including long-standing employees. The tech giant confirmed this development in an email to The Register, stating that it is "becoming a leaner company" through this reorganization. Also Read | Elon Musk’s xAI raises $6 billion; OpenAI develops new flagship AI model The company says its restructuring involves merging teams and prioritizing investments in a bid to enhance innovation, value and customer service. In an internal memo to employees, Bill Scannell, President of Global Sales and Customer Operations, and John Byrne, Global Channels President at Dell, discussed "streamlining layers of management." They emphasized Dell's ambition to outpace market growth by leveraging "the value of modern IT and AI" for client organizations. Who all are affected? As per various reports, these layoffs will primarily affect managers and senior managers, some with over two decades of experience at the company. One employee, speaking anonymously, told Business Insider (BI), “It was mostly managers, directors and VPs. They also hit marketing and operations. They combined organizations and also made the ratio higher for the managers. Now every manager has a minimum of 15 employees,” as quoted by BI. Watch | Tech sector layoffs in 2024: Tech layoffs exceed 124,000 in 2024 as industry struggles × Reports also said most employees affected by the layoffs, are expected to receive a severance package comprising two months' wages, plus an additional week for each year of service, up to a maximum of 26 weeks. The severance package may also include potential partial bonus payouts. However, some long-term employees have expressed dissatisfaction over losing long-term incentives and stock options as part of this process. Also Read | World’s first AI software engineer Devin can write code with a single prompt Amid multiple rounds of layoffs and backlash from ex-employees, Dell remains optimistic about its future, particularly with its new focus on AI. Dell is also hopeful that a new generation of AI-optimized PCs will fuel upgrades. "We aim to grow faster than the market by seamlessly meeting our customers and partners online, virtually or in person," Scannell and Byrne wrote in their memo. (With inputs from agencies)

Dell fires 10% of its global workforce in major shift towards AI: Report

Dell and Super Micro Computer stocks rose on Thursday after Elon Musk mentioned the two companies as providing the kind of essential hardware in the supercomputer his firm, AI startup xAI, is developing.&nbsp;

The outsized stock prices of these companies surge in reflection of Wall Street's rising optimism over AI technology. Investors are hanging onto every opportunity to get into AI businesses, from consumer-facing brands offering AI applications to manufacturers that work with chips and servers that form the bedrock of AI infrastructure.&nbsp;

Dell's stock surged by as much as 5 per cent Thursday morning, and shares of Super Micro spiked nearly 9 per cent. The stock pop was partly spurred by a Wednesday tweet from Dell's CEO, Michael Dell, who wrote on X (formerly Twitter), "We're building a Dell AI factory with Nvidia to power Grok for xAI." A few hours later, Musk tweeted that Dell would be making half of the supercomputer's racks; when asked which company would make the other half, Musk replied, "SMC."&nbsp;

The AI announcement came on the Juneteenth holiday when markets were closed. No sooner than when the markets opened again, investors pounced, sending the stocks of both companies through the roof.&nbsp;

Dell and Super Micro set themselves strategically to benefit from the rapidly expanding AI technologies. This came even earlier in the week when Super Micro revealed plans to expand the Silicon Valley facilities to accommodate its AI business. And Dell reported last month that revenue from its AI servers had more than doubled from the previous quarter.&nbsp;

Well, it's just a remarkable piece of work that Elon Musk is doing to prepare xAI to stay ahead in the AI industry, as large technology companies like Microsoft and Alphabet, Google's parent company, are already quite far ahead. The AI firm of Musk raised $6 billion last month following series B funding and reached a valuation of $24 billion. The huge investment reflects the stakes in a fast-evolving field of high-speed competition.&nbsp;

Other major players are getting into AI, as well. Early this month, Apple unfolded its strategic vision at the Worldwide Developers Conference by unleashing Apple Intelligence. This is a big shift as Apple plans to integrate different AI-powered features into its operating systems and products.&nbsp;

Although it posted impressive gains for several tech giants, there's no like-to-like comparison for Nvidia. Immediately upon the news from Dell and Super Micro, shares of Nvidia rose more than 2 per cent on Thursday alone. Its market capitalization has already proved an iconic AI rally play of over $3.42 trillion.&nbsp;

In the final analysis, the stocks of companies like Dell and Super Micro surged, again underscoring increasing investor enthusiasm toward the technology. Massive contributions from major tech firms and new entrants into the field, like xAI, tell us there is no evidence to doubt the plausible growth this industry will experience. Looking at these and other companies continuing to innovate and grow, exciting developments lie ahead for the landscape of AI technology.&nbsp;

Dell and Super Micro Computer stocks rose on Thursday after Elon Musk mentioned the two companies as providing the kind of essential hardware in the supercomputer his firm, AI startup xAI, is developing.

Dell and Super Micro Computer stocks rose on Thursday after Elon Musk mentioned the two companies as providing the kind of essential hardware in the supercomputer his firm, AI startup xAI, is developing. The outsized stock prices of these companies surge in reflection of Wall Street's rising optimism over AI technology. Investors are hanging onto every opportunity to get into AI businesses, from consumer-facing brands offering AI applications to manufacturers that work with chips and servers that form the bedrock of AI infrastructure. Dell's stock surged by as much as 5 per cent Thursday morning, and shares of Super Micro spiked nearly 9 per cent. The stock pop was partly spurred by a Wednesday tweet from Dell's CEO, Michael Dell, who wrote on X (formerly Twitter), "We're building a Dell AI factory with Nvidia to power Grok for xAI." A few hours later, Musk tweeted that Dell would be making half of the supercomputer's racks; when asked which company would make the other half, Musk replied, "SMC." The AI announcement came on the Juneteenth holiday when markets were closed. No sooner than when the markets opened again, investors pounced, sending the stocks of both companies through the roof. Dell and Super Micro set themselves strategically to benefit from the rapidly expanding AI technologies. This came even earlier in the week when Super Micro revealed plans to expand the Silicon Valley facilities to accommodate its AI business. And Dell reported last month that revenue from its AI servers had more than doubled from the previous quarter. Well, it's just a remarkable piece of work that Elon Musk is doing to prepare xAI to stay ahead in the AI industry, as large technology companies like Microsoft and Alphabet, Google's parent company, are already quite far ahead. The AI firm of Musk raised $6 billion last month following series B funding and reached a valuation of $24 billion. The huge investment reflects the stakes in a fast-evolving field of high-speed competition. Other major players are getting into AI, as well. Early this month, Apple unfolded its strategic vision at the Worldwide Developers Conference by unleashing Apple Intelligence. This is a big shift as Apple plans to integrate different AI-powered features into its operating systems and products. Although it posted impressive gains for several tech giants, there's no like-to-like comparison for Nvidia. Immediately upon the news from Dell and Super Micro, shares of Nvidia rose more than 2 per cent on Thursday alone. Its market capitalization has already proved an iconic AI rally play of over $3.42 trillion. In the final analysis, the stocks of companies like Dell and Super Micro surged, again underscoring increasing investor enthusiasm toward the technology. Massive contributions from major tech firms and new entrants into the field, like xAI, tell us there is no evidence to doubt the plausible growth this industry will experience. Looking at these and other companies continuing to innovate and grow, exciting developments lie ahead for the landscape of AI technology.

Elon Musk's AI ambitions ignite Dell and Super Micro stocks

Dell Technologies has announced a major expansion of its artificial intelligence (AI) offerings, unveiling a new line of AI-enabled personal computers (PCs) powered by Qualcomm processors and introducing servers compatible with Nvidia's latest chips. <o:p></o:p>

The announcements were made at a high-profile event in Las Vegas, aiming to strengthen Dell's presence in the AI server market and capitalise on the anticipated recovery of the PC market this year.<o:p></o:p>

The new AI-capable PCs will feature Qualcomm's Snapdragon X series chips, which include neural processing units (NPUs) specifically designed for handling complex AI tasks. <o:p></o:p>

Out of the five new PC models, two are available for pre-order starting today, while the remaining models will be released in the coming months.<o:p></o:p>

This launch coincides with Microsoft's annual Build event, where CEO Satya Nadella introduced the "Copilot+" PCs. <o:p></o:p>

Dell is among the key partners, alongside Qualcomm, Intel, and Advanced Micro Devices (AMD), contributing to this initiative. <o:p></o:p>

Following these announcements, Qualcomm’s shares saw a nearly 2 per cent increase, hitting a record high, while Dell’s shares experienced a slight decline of about 2.6 per cent.<o:p></o:p>

In addition to the AI PCs, Dell revealed its latest server, which supports Nvidia's Blackwell chips and features advanced liquid cooling technology. <o:p></o:p>

This new cooling method is more efficient compared to traditional air cooling systems, reducing power consumption. <o:p></o:p>

Arthur Lewis, president of Dell's infrastructure solutions group, described the Nvidia-based servers as the fastest growing product in the company's history.<o:p></o:p>

The AI server market is poised for substantial growth, with spending expected to exceed $33 billion in 2024, according to the International Data Corporation (IDC). <o:p></o:p>

Dell anticipates that a significant portion of this spending will come from smaller companies still in the early stages of technology adoption. <o:p></o:p>

Lewis mentioned that Dell does not foresee AI investments severely impacting expenditure on traditional servers, despite broader market trends showing a shift towards AI server spending over conventional servers.<o:p></o:p>

Dell's quarterly earnings report, due on May 30, is eagerly awaited by analysts who expect that the new AI PCs and servers will drive increased demand for the company's products. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Dell Technologies has announced a major expansion of its artificial intelligence (AI) offerings, unveiling a new line of AI-enabled personal computers (PCs) powered by Qualcomm processors and introducing servers compatible with Nvidia's latest chips.

Dell Technologies has announced a major expansion of its artificial intelligence (AI) offerings, unveiling a new line of AI-enabled personal computers (PCs) powered by Qualcomm processors and introducing servers compatible with Nvidia's latest chips. The announcements were made at a high-profile event in Las Vegas, aiming to strengthen Dell's presence in the AI server market and capitalise on the anticipated recovery of the PC market this year. The new AI-capable PCs will feature Qualcomm's Snapdragon X series chips, which include neural processing units (NPUs) specifically designed for handling complex AI tasks. Out of the five new PC models, two are available for pre-order starting today, while the remaining models will be released in the coming months. This launch coincides with Microsoft's annual Build event, where CEO Satya Nadella introduced the "Copilot+" PCs. Dell is among the key partners, alongside Qualcomm, Intel, and Advanced Micro Devices (AMD), contributing to this initiative. Following these announcements, Qualcomm’s shares saw a nearly 2 per cent increase, hitting a record high, while Dell’s shares experienced a slight decline of about 2.6 per cent. In addition to the AI PCs, Dell revealed its latest server, which supports Nvidia's Blackwell chips and features advanced liquid cooling technology. This new cooling method is more efficient compared to traditional air cooling systems, reducing power consumption. Arthur Lewis, president of Dell's infrastructure solutions group, described the Nvidia-based servers as the fastest growing product in the company's history. The AI server market is poised for substantial growth, with spending expected to exceed $33 billion in 2024, according to the International Data Corporation (IDC). Dell anticipates that a significant portion of this spending will come from smaller companies still in the early stages of technology adoption. Lewis mentioned that Dell does not foresee AI investments severely impacting expenditure on traditional servers, despite broader market trends showing a shift towards AI server spending over conventional servers. Dell's quarterly earnings report, due on May 30, is eagerly awaited by analysts who expect that the new AI PCs and servers will drive increased demand for the company's products. (With inputs from Reuters)

Dell expands AI ambitions with new PCs and Nvidia-powered servers

If you're in the market for a new laptop, this story is for you. A top PC manufacturer has introduced new AI-powered laptops in India. Watch this story for more details.

New Dell's AI-powered laptops: Alienware M16 R2, XPS 16, Inspiron 14 Plus

The company informed remote workers in a memo that they can continue working from home but they will not be considered for promotions. Dell has had a hybrid work culture long before Covid pandemic struck.

Dell's pulls the plug on work from home: No promotion if you are working from home

In February, computer maker Dell circulated a memo among its employees outlining significant changes in its remote work policies. The memo, according to reports, delineated between "hybrid" and "remote" workers. Hybrid employees were mandated to spend at least three days each week in an approved office space.

Remote workers received notable news in the memo: while they were permitted to continue working from home, they were effectively sidelined from promotional opportunities. The memo explicitly stated that remote workers would not be considered for promotions or permitted to switch roles within the company. Notably, advancement within Dell's ranks would necessitate a transition to the hybrid work model, as reported by Business Insider.&nbsp;

Reports indicate varied responses among Dell employees to this policy overhaul. Some expressed sentiments of discontentment and disillusionment, highlighting a departure from the company's previous emphasis on the quality of work rather than physical location.&nbsp;

"For remote team members, it is important to understand the trade-offs: Career advancement, including applying to new roles in the company, will require a team member to reclassify as hybrid onsite," the memo said, as cited by Business Insider.

Also watch |&nbsp;As bosses withdraw indefinite Work from Home, do employees want to return to office?| WION Fineprint

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However, the new mandate has generated widespread dissatisfaction, with employees voicing concerns over its potential impact on their career trajectories and work-life balance. Many fear the loss of upward mobility and the erosion of the flexibility they once enjoyed. The prevailing sentiment among employees seems to be one of apprehension and frustration, with discussions reverberating throughout the company about the perceived drawbacks of the policy shift.

<h2>Dell's policy shift and its ripple effects</h2>

Dell's decision to implement stringent return-to-office policies, particularly regarding promotion&nbsp;eligibility for remote workers, marks a significant departure from its previous approach to remote work. This directive has sparked internal discourse and raised questions about the future dynamics of work within the company.

(With inputs from agencies)

In February, computer maker Dell circulated a memo among its employees outlining significant changes in its remote work policies. The memo, according to reports, delineated between "hybrid" and "remote" workers.

In February, computer maker Dell circulated a memo among its employees outlining significant changes in its remote work policies. The memo, according to reports, delineated between "hybrid" and "remote" workers. Hybrid employees were mandated to spend at least three days each week in an approved office space. Remote workers received notable news in the memo: while they were permitted to continue working from home, they were effectively sidelined from promotional opportunities. The memo explicitly stated that remote workers would not be considered for promotions or permitted to switch roles within the company. Notably, advancement within Dell's ranks would necessitate a transition to the hybrid work model, as reported by Business Insider. Reports indicate varied responses among Dell employees to this policy overhaul. Some expressed sentiments of discontentment and disillusionment, highlighting a departure from the company's previous emphasis on the quality of work rather than physical location. "For remote team members, it is important to understand the trade-offs: Career advancement, including applying to new roles in the company, will require a team member to reclassify as hybrid onsite," the memo said, as cited by Business Insider. Also watch | As bosses withdraw indefinite Work from Home, do employees want to return to office?| WION Fineprint Also read | A new study has revealed an interesting perk of working from home, and not just for the employees However, the new mandate has generated widespread dissatisfaction, with employees voicing concerns over its potential impact on their career trajectories and work-life balance. Many fear the loss of upward mobility and the erosion of the flexibility they once enjoyed. The prevailing sentiment among employees seems to be one of apprehension and frustration, with discussions reverberating throughout the company about the perceived drawbacks of the policy shift. Dell's policy shift and its ripple effects Dell's decision to implement stringent return-to-office policies, particularly regarding promotion eligibility for remote workers, marks a significant departure from its previous approach to remote work. This directive has sparked internal discourse and raised questions about the future dynamics of work within the company. (With inputs from agencies)

Dell sends shocking memo to employees saying no promotion to those who work from home

Investors in US tech giant Dell are questioning the soaring 90 per cent rally in the stock, wondering if the high price justifies growth that has yet to materialise. According to a Bloomberg report, the surge, propelling the personal computer giant's shares to a record high by the end of November, was driven by optimistic expectations of a boost from artificial intelligence (AI) demand. &nbsp;

However, Dell's recent third-quarter report revealed that the much-anticipated AI growth is not on the immediate horizon, prompting cautious sentiments among investors.

The stock, currently trading above its five-year average at about 10 times forward earnings, has encountered headwinds as Dell’s third-quarter results indicated that the expected AI boost is not imminent. &nbsp;

Bloomberg cited analysts, like Hendi Susanto from Gabelli Funds, who are adopting a patient approach, stating, “We are waiting to seek a better entry point.” &nbsp;

Susanto further acknowledged the run-up in the stock and emphasised the need for caution in light of the uncertain AI growth prospects.

Mixed signals from Dell’s second quarter report

Dell initially fuelled optimism in August when it surpassed sales expectations in the second quarter and expressed confidence in the long-term potential of servers supporting AI workloads. However, the recent third-quarter results painted a different picture. While Dell recorded $500 million in revenue from high-powered servers, this was insufficient to offset the decline in PC sales. &nbsp;

Morningstar’s William Kerwin, who downgraded Dell to a sell rating in September, warned that the stock is overvalued at current levels, echoing concerns about the company’s ability to navigate challenges in the PC and server/storage markets.

Barclays analysts, led by Tim Long, joined the chorus of scepticism, downgrading Dell shares to a sell-equivalent rating in September. They attributed the downgrade to macroeconomic pressures, anticipating difficulty in the PC and server/storage markets that AI might struggle to offset.

Future growth hinges on AI-Based devices

Daniel Newman, CEO of The Futurum Group, emphasised the crucial role AI-based devices will play in Dell's future growth. “Growth in this area will require a cycle when people are upgrading because AI enables them to do something new on the device,” Bloomberg quoted Newman as saying. He believes that genuine growth won't materialise until AI-based PCs and phones enter the market. However, he predicts this may not happen until the latter half of 2024.

Current consensus projections indicate that Dell's sales will decrease to roughly $21 billion in the fiscal first quarter of 2025 before increasing to approximately $23 billion in the second quarter and continuing to rise through the end of the year. Despite these projections, over 70 per cent of analysts covering the company maintain a buy-equivalent rating, with an average $79 price target, implying nearly 14 per cent upside.

A silver lining in Dell’s solid financial position

While concerns about Dell's growth persist, some investors find solace in the company's solid financial position. &nbsp;

Jack Ablin, CIO of Cresset Capital LLC, stated, “We like companies that have a very sterling balance sheet, don’t borrow very much and aren’t as subject to the vicissitudes of the market and the economy.” &nbsp;

Ablin believes that Dell's robust financials position it well to weather a slowdown, potentially benefiting from the next wave of AI demand. The lingering question remains whether AI will serve as the catalyst to drive the next hardware cycle.

(With inputs from Bloomberg)

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Investors in US tech giant Dell are questioning the soaring 90 per cent rally in the stock, wondering if the high price justifies growth that has yet to materialise.

Investors in US tech giant Dell are questioning the soaring 90 per cent rally in the stock, wondering if the high price justifies growth that has yet to materialise. According to a Bloomberg report, the surge, propelling the personal computer giant's shares to a record high by the end of November, was driven by optimistic expectations of a boost from artificial intelligence (AI) demand. However, Dell's recent third-quarter report revealed that the much-anticipated AI growth is not on the immediate horizon, prompting cautious sentiments among investors. The stock, currently trading above its five-year average at about 10 times forward earnings, has encountered headwinds as Dell’s third-quarter results indicated that the expected AI boost is not imminent. Bloomberg cited analysts, like Hendi Susanto from Gabelli Funds, who are adopting a patient approach, stating, “We are waiting to seek a better entry point.” Susanto further acknowledged the run-up in the stock and emphasised the need for caution in light of the uncertain AI growth prospects. Mixed signals from Dell’s second quarter report Dell initially fuelled optimism in August when it surpassed sales expectations in the second quarter and expressed confidence in the long-term potential of servers supporting AI workloads. However, the recent third-quarter results painted a different picture. While Dell recorded $500 million in revenue from high-powered servers, this was insufficient to offset the decline in PC sales. Morningstar’s William Kerwin, who downgraded Dell to a sell rating in September, warned that the stock is overvalued at current levels, echoing concerns about the company’s ability to navigate challenges in the PC and server/storage markets. Barclays analysts, led by Tim Long, joined the chorus of scepticism, downgrading Dell shares to a sell-equivalent rating in September. They attributed the downgrade to macroeconomic pressures, anticipating difficulty in the PC and server/storage markets that AI might struggle to offset. Future growth hinges on AI-Based devices Daniel Newman, CEO of The Futurum Group, emphasised the crucial role AI-based devices will play in Dell's future growth. “Growth in this area will require a cycle when people are upgrading because AI enables them to do something new on the device,” Bloomberg quoted Newman as saying. He believes that genuine growth won't materialise until AI-based PCs and phones enter the market. However, he predicts this may not happen until the latter half of 2024. Current consensus projections indicate that Dell's sales will decrease to roughly $21 billion in the fiscal first quarter of 2025 before increasing to approximately $23 billion in the second quarter and continuing to rise through the end of the year. Despite these projections, over 70 per cent of analysts covering the company maintain a buy-equivalent rating, with an average $79 price target, implying nearly 14 per cent upside. A silver lining in Dell’s solid financial position While concerns about Dell's growth persist, some investors find solace in the company's solid financial position. Jack Ablin, CIO of Cresset Capital LLC, stated, “We like companies that have a very sterling balance sheet, don’t borrow very much and aren’t as subject to the vicissitudes of the market and the economy.” Ablin believes that Dell's robust financials position it well to weather a slowdown, potentially benefiting from the next wave of AI demand. The lingering question remains whether AI will serve as the catalyst to drive the next hardware cycle. (With inputs from Bloomberg) WATCH WION LIVE HERE

Dell's stock rally faces reality check as AI demand fails to keep pace

Dell investors are talking about the mismatch between the revenue growth & the high stock price. The company's stock rose over 90% in november to a record high on predictions of higher demand for Artificial Intelligence. But the stock has fallen since dell's september-quarter report revealed the rise in demand is far off.

Dell stock rises over 90% in November to a record high

Global aviation is all set to emerge out of Covid shadow. Here's why<o:p></o:p>

The airline industry is expected to have a significant upturn in 2024, according to optimistic estimates issued by the International Air Transport Association (IATA).&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/global-aviation-is-all-set-to-emerge-out-of-covid-shadow-heres-why-667080">Read more here</a><o:p></o:p>

Dell's stock rally faces reality check as AI demand fails to keep pace<o:p></o:p>

US tech company, Dell’s stock has surged 90 per cent, but investors remain doubtful if the high value is justified by growth that hasn't yet materialised.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/dells-stock-rally-faces-reality-check-as-ai-demand-fails-to-keep-pace-667085">Read more here</a><o:p></o:p>

Taiwan's financial ties with China unravel as ETF market nears collapse<o:p></o:p>

The world’s largest Chinese bond exchange-traded fund (ETF) market is on the verge of collapsing, indicating the increasing economic and financial divergence between Taiwan and China.&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/taiwans-financial-ties-with-china-unravel-as-etf-market-nears-collapse-667106">Read more here</a><o:p></o:p>

Russian co-founder of crypto exchange Bitzlato pleads guilty to money laundering charges<o:p></o:p>

Co-founder and principal proprietor of the virtual currency exchange Bitzlato, registered in Hong Kong, Anatoly Legkodymov pleaded guilty in a U.S. court for operating a money-transmitting enterprise that handled around $700 million of illicit funding.&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/russian-co-founder-of-crypto-exchange-bitzlato-pleads-guilty-to-money-laundering-charges-667112">Read more here</a>

McDonald's unveils ambitious expansion plans, aiming for 50,000 restaurants by 2027<o:p></o:p>

McDonald's presented its most ambitious development strategy in 68 years on Wednesday, along with its strategic vision for the future.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/mcdonalds-unveils-ambitious-expansion-plans-aiming-for-50000-restaurants-by-2027-667143">Read more here</a><o:p></o:p>

Paytm share price falls 18pc amid plans to scale back post-paid loans<o:p></o:p>

Paytm’s share price, dropped by an shocking 18 per cent on Thursday. The company's disclosure of strategic plans to cut down its small-ticket post-paid loans was preceded by this market upheaval.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytm-share-price-falls-18pc-amid-plans-to-scale-back-post-paid-loans-667147">Read more here</a><o:p></o:p>

SpaceX initiates tender offer, eyes valuation of $175 billion in share sale<o:p></o:p>

Elon Musk's SpaceX is looking out for a tender offer that could potentially be worth up to $175 billion for the private space exploration corporation.&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/spacex-initiates-tender-offer-eyes-valuation-of-175-billion-in-share-sale-667153">Read more here</a>

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Global aviation is all set to emerge out of Covid shadow. Here's why The airline industry is expected to have a significant upturn in 2024, according to optimistic estimates issued by the International Air Transport Association (IATA).

Global aviation is all set to emerge out of Covid shadow. Here's why The airline industry is expected to have a significant upturn in 2024, according to optimistic estimates issued by the International Air Transport Association (IATA). Read more here Dell's stock rally faces reality check as AI demand fails to keep pace US tech company, Dell’s stock has surged 90 per cent, but investors remain doubtful if the high value is justified by growth that hasn't yet materialised. Read more here Taiwan's financial ties with China unravel as ETF market nears collapse The world’s largest Chinese bond exchange-traded fund (ETF) market is on the verge of collapsing, indicating the increasing economic and financial divergence between Taiwan and China. Read more here Russian co-founder of crypto exchange Bitzlato pleads guilty to money laundering charges Co-founder and principal proprietor of the virtual currency exchange Bitzlato, registered in Hong Kong, Anatoly Legkodymov pleaded guilty in a U.S. court for operating a money-transmitting enterprise that handled around $700 million of illicit funding. Read more here McDonald's unveils ambitious expansion plans, aiming for 50,000 restaurants by 2027 McDonald's presented its most ambitious development strategy in 68 years on Wednesday, along with its strategic vision for the future. Read more here Paytm share price falls 18pc amid plans to scale back post-paid loans Paytm’s share price, dropped by an shocking 18 per cent on Thursday. The company's disclosure of strategic plans to cut down its small-ticket post-paid loans was preceded by this market upheaval. Read more here SpaceX initiates tender offer, eyes valuation of $175 billion in share sale Elon Musk's SpaceX is looking out for a tender offer that could potentially be worth up to $175 billion for the private space exploration corporation. Read more here WATCH WION LIVE HERE

WION Business Wrap | Global aviation emerges optimistc, Dell’s stock rally, Taiwan-China financial ties & more

Dell technologies stock jumped 22.2% on Friday to a new all-time high after the company upgraded its full-year earnings expectations thanks to the positive effects of artificial intelligence and a recovery in the demand for computer hardware after a prolonged downturn.

How AI boosted Dell's shares

The Australian unit of Dell Technologies Inc was found guilty of misleading the customers about the prices, and discounts on its add-on monitors on its official website, said Australia's competition regulator on Tuesday.

As per reports, the customers who chose to purchase a personal computer system were given the option by Dell Australia in the name of a lucrative offer to bundle a compatible monitor at a discounted, or a 'strikethrough' price.

The company suggested to the clients that it would be much cheaper to buy the monitor in a bundle rather than separately.

"Dell Australia admitted that the monitors were not sold for the 'strikethrough' price for most of the relevant time and, in some cases, the add-on price shown was more expensive than if the monitor was bought on a stand-alone basis," the Australian Competition and Consumer Commission (ACCC) said in a filing.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/tech-layoffs-2023-dell-to-lay-off-6500-employees-cut-5-of-its-global-workforce-amid-uncertain-future-559204">Tech layoffs 2023: Dell to lay off 6,500 employees, cut 5% of its global workforce amid 'uncertain future'</a>

The regulator further added in the filing that the customers paid more than A$2 million ($1.32 million) for add-on monitors between August 2019 and mid-December 2021.

As per a Reuters report, the tech giant sold more than 5,300 add-on monitors with exaggerated discounts and has agreed to offer refunds&nbsp;and compensation to more than &nbsp;4,250 affected consumers.

<h2>Layoffs at Dell</h2>

Earlier this year, Dell Technologies Inc announced layoffs after the company's Co-Chief Operating Officer&nbsp;Jeff Clarke asserted that the company was facing tough market conditions with an uncertain future.&nbsp;

Clarke said, "The company is experiencing market conditions that continue to erode with an uncertain future."

"We’ve navigated economic downturns before and we've emerged stronger," Clarke wrote in his note to employees. "We will be ready when the market rebounds." The company announced a similar layoff in 2020 when the COVID-19 pandemic hit.

Industry analyst International Data Corporation (IDC) said preliminary data shows personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline with 37 per cent as compared with the same period in 2021, according to IDC. Dell generates about 55 per cent of its revenue from PCs.

(With inputs from agencies)

&nbsp;

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The Australian unit of Dell Technologies Inc was found guilty of misleading the customers about the prices, and discounts on its add-on monitors on its official website, said Australia's competition regulator on Tuesday.

The Australian unit of Dell Technologies Inc was found guilty of misleading the customers about the prices, and discounts on its add-on monitors on its official website, said Australia's competition regulator on Tuesday. As per reports, the customers who chose to purchase a personal computer system were given the option by Dell Australia in the name of a lucrative offer to bundle a compatible monitor at a discounted, or a 'strikethrough' price. The company suggested to the clients that it would be much cheaper to buy the monitor in a bundle rather than separately. "Dell Australia admitted that the monitors were not sold for the 'strikethrough' price for most of the relevant time and, in some cases, the add-on price shown was more expensive than if the monitor was bought on a stand-alone basis," the Australian Competition and Consumer Commission (ACCC) said in a filing. Also read: Tech layoffs 2023: Dell to lay off 6,500 employees, cut 5% of its global workforce amid 'uncertain future' The regulator further added in the filing that the customers paid more than A$2 million ($1.32 million) for add-on monitors between August 2019 and mid-December 2021. As per a Reuters report, the tech giant sold more than 5,300 add-on monitors with exaggerated discounts and has agreed to offer refunds and compensation to more than 4,250 affected consumers. Layoffs at Dell Earlier this year, Dell Technologies Inc announced layoffs after the company's Co-Chief Operating Officer Jeff Clarke asserted that the company was facing tough market conditions with an uncertain future. Clarke said, "The company is experiencing market conditions that continue to erode with an uncertain future." "We’ve navigated economic downturns before and we've emerged stronger," Clarke wrote in his note to employees. "We will be ready when the market rebounds." The company announced a similar layoff in 2020 when the COVID-19 pandemic hit. Industry analyst International Data Corporation (IDC) said preliminary data shows personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline with 37 per cent as compared with the same period in 2021, according to IDC. Dell generates about 55 per cent of its revenue from PCs. (With inputs from agencies) WATCH WION LIVE HERE

Australian unit of Dell Technologies Inc found guilty of misleading customers

Dell is set to lay off about 6,650 workers as they cannot meet the demand for personal computers. This is expected to affect about 5% of its global workforce. Watch further know more.

Dell to cut 5% of its global workforce

Tech layoffs: Dell Technologies Inc became the latest tech company to announce layoffs. It has said that it is planning to eliminate about 6,650 jobs which is about 5 per cent of its total global workforce. According to a report by Bloomberg, Dell’s Co-Chief Operating Officer, Jeff Clarke claimed that the company is facing tough market conditions with an uncertain future.&nbsp;

Clarke said, "The company is experiencing market conditions that continue to erode with an uncertain future."

"We’ve navigated economic downturns before and we've emerged stronger," Clarke wrote in his note to employees. "We will be ready when the market rebounds." The company had announced a similar layoff in 2020 when the Covid-19 pandemic had hit."

The announcement by Dell adds it to the growing list of tech companies like Google, Amazon, Meta, and Twitter that have been forced to make a similarly tough decision due to the economic impact of the pandemic. The tech sector which was once considered the most reliable source of employment has now been stuck in troubled waters. Even big-tech companies are now grappling with the balancing act of cost-cutting measures with the need to remain competitive.

Industry analyst International Data Corporation (IDC) said preliminary data show personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline with 37 per cent as compared with the same period in 2021, according to IDC. Dell generates about 55 per cent of its revenue from PCs.

<h2>Google, Amazon, HP, and Cisco layoffs&nbsp;</h2>

Earlier in November, Dell’s rival PC brand, HP also announced that it will be laying off around 6,000 employees over the next three years. HP also acknowledged that the fall in PC demand was the primary reason for taking this step. Cisco Systems Inc. and International Business Machines Corp. had also said that they would eliminate about 4,000 workers each.

The tech sector announced 97,171 job cuts in the year 2022, which is up from 649 per cent compared to the previous year.&nbsp;

Google also laid off 12,000 employees in January and Amazon decided to lay off 18,00 employees instead of the previous estimates of 10,000. These layoffs are hurting migrants even more as popular pathways like H1B visas in the US need an employer to stay relevant. The fired employees get a grace period of 60 days to either apply via another employer or leave the country.&nbsp;

Tech layoffs: Dell Technologies Inc became the latest tech company to announce layoffs. It has said that it is planning to eliminate about 6,650 jobs which is about 5 per cent of its total global workforce.

Tech layoffs: Dell Technologies Inc became the latest tech company to announce layoffs. It has said that it is planning to eliminate about 6,650 jobs which is about 5 per cent of its total global workforce. According to a report by Bloomberg, Dell’s Co-Chief Operating Officer, Jeff Clarke claimed that the company is facing tough market conditions with an uncertain future. Clarke said, "The company is experiencing market conditions that continue to erode with an uncertain future." "We’ve navigated economic downturns before and we've emerged stronger," Clarke wrote in his note to employees. "We will be ready when the market rebounds." The company had announced a similar layoff in 2020 when the Covid-19 pandemic had hit." The announcement by Dell adds it to the growing list of tech companies like Google, Amazon, Meta, and Twitter that have been forced to make a similarly tough decision due to the economic impact of the pandemic. The tech sector which was once considered the most reliable source of employment has now been stuck in troubled waters. Even big-tech companies are now grappling with the balancing act of cost-cutting measures with the need to remain competitive. Industry analyst International Data Corporation (IDC) said preliminary data show personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline with 37 per cent as compared with the same period in 2021, according to IDC. Dell generates about 55 per cent of its revenue from PCs. Google, Amazon, HP, and Cisco layoffs Earlier in November, Dell’s rival PC brand, HP also announced that it will be laying off around 6,000 employees over the next three years. HP also acknowledged that the fall in PC demand was the primary reason for taking this step. Cisco Systems Inc. and International Business Machines Corp. had also said that they would eliminate about 4,000 workers each. The tech sector announced 97,171 job cuts in the year 2022, which is up from 649 per cent compared to the previous year. Google also laid off 12,000 employees in January and Amazon decided to lay off 18,00 employees instead of the previous estimates of 10,000. These layoffs are hurting migrants even more as popular pathways like H1B visas in the US need an employer to stay relevant. The fired employees get a grace period of 60 days to either apply via another employer or leave the country.

Tech layoffs 2023: Dell to lay off 6,500 employees, cut 5% of its global workforce amid 'uncertain future'

The Australian watchdog has dragged the local unit of American tech company Dell to local court over allegations that it misled people about the price of the monitors that consumers could add on.

From August 2019&nbsp;to December 16, 2021, Dell Australia duped people on the potential savings a customer got when an additional monitor was purchased with a computer, the Australian&nbsp;Competition and Consumer Commission (ACCC) said.

“The ACCC alleges the monitors were not sold for the ‘strikethrough’ price for most of the relevant time and, in some cases, the add-on price shown was more expensive than if the monitor was bought on a stand-alone basis,” ACCC Commissioner Liza Carver said, according to Reuters news agency.

The ACCC said it is seeking penalties, declarations, consumer redress, costs, and other orders.

In an email statement, Dell clarified that an error in the price process led to incorrect information being displayed on its website about the prices of certain monitors, adding that about 2,100 customers were affected by it.

Also read |&nbsp;<a href="https://www.wionews.com/world/cyberattacks-rise-four-fold-in-australia-says-government-report-531148" hreflang="en">Cyberattacks rise four-fold in Australia, says government report</a>

The company further said that it has deactivated that functionality on the website and that they are actively working to update the systems to “prevent the error from re-occurring."

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"This occurred during a two-and-a-half-year period and we believe it affected approximately 2,100 customers," Dell said.

"We have fully cooperated with the ACCC throughout their investigation, have been working with impacted customers to provide appropriate refunds plus interest and are taking steps to improve our pricing processes to ensure this sort of error does not happen again.”

(With inputs from agencies)

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The Australian watchdog has dragged the local unit of American tech company Dell to local court over allegations that it misled people about the price of the monitors that consumers could add on.

The Australian watchdog has dragged the local unit of American tech company Dell to local court over allegations that it misled people about the price of the monitors that consumers could add on. From August 2019 to December 16, 2021, Dell Australia duped people on the potential savings a customer got when an additional monitor was purchased with a computer, the Australian Competition and Consumer Commission (ACCC) said. “The ACCC alleges the monitors were not sold for the ‘strikethrough’ price for most of the relevant time and, in some cases, the add-on price shown was more expensive than if the monitor was bought on a stand-alone basis,” ACCC Commissioner Liza Carver said, according to Reuters news agency. The ACCC said it is seeking penalties, declarations, consumer redress, costs, and other orders. In an email statement, Dell clarified that an error in the price process led to incorrect information being displayed on its website about the prices of certain monitors, adding that about 2,100 customers were affected by it. Also read | Cyberattacks rise four-fold in Australia, says government report The company further said that it has deactivated that functionality on the website and that they are actively working to update the systems to “prevent the error from re-occurring." Also read | South Korea detects 180 North Korean warplanes near military border "This occurred during a two-and-a-half-year period and we believe it affected approximately 2,100 customers," Dell said. "We have fully cooperated with the ACCC throughout their investigation, have been working with impacted customers to provide appropriate refunds plus interest and are taking steps to improve our pricing processes to ensure this sort of error does not happen again.” (With inputs from agencies) WATCH WION LIVE HERE:

Australian watchdog drags Dell to court for misleading customers about cost of monitors

One of the most influential leaders in Iraq, Moqtada al-Sadr on Monday announced via Twitter that he was quitting politics. The announcement led to total chaos in the capital city of Baghdad. Meanwhile, NASA's highly ambitious Artemis 1 mission was suspended indefinitely after the SLS developed some technical issues. Read these and more below.&nbsp;

Click on the headlines to read more

<a href="https://www.wionews.com/world/iraq-protests-firing-after-sadrs-political-exit-army-declares-curfew-511255">Iraq: Protests and firing after Sadr's political exit, army declares curfew</a>

Iraqi army has declared a nationwide curfew after supporters of Shiite cleric Moqtada Sadr stormed government buildings in Baghdad's Green Zone. The curfew will come into effect from 7 pm local time (1600 GMT) on Monday, August 29. The protests erupted on the same day of declaration from Sadr of a political exit.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/08/29/291445-iraq-2.jpg" />

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NASA has postponed&nbsp;the delay-stricken launch of Artemis-1 mission due to technical reasons. Preparations were on for the launch on Monday (August 29). However, the countdown clock was put on hold 40 minutes from the launch. The lift-off was scheduled to take place at 1803 IST.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/08/29/291363-nasa-artemis-launch.jpg" />

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Amid rising coronavirus cases, the Chinese authorities on Monday announced the closing of the world's largest electronics market of Huaqiangbei in Shenzhen. The closure follows President Xi Jinping's highly criticised 'zero-Covid tolerance' policy.

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Europe is reeling under a major energy crisis in the backdrop of the Russia-Ukraine war. Now, Belgian Energy Minister Tinne Van der Straeten has shot off a warning that the continent faces terrible winters for the next 5-10 years if no cap is put on the gas prices.&nbsp;

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/06/25/273977-untitled-design-13.png" />

<a href="https://www.wionews.com/world/fortunes-of-americas-richest-people-slashed-by-78-billion-after-powells-speech-511145">Fortunes of America’s richest people slashed by $78bn after Fed chief Powell's speech</a>

During his speech, which was eight minutes long, Powell pointed out that the US central bank will keep raising interest rates and probably leave them elevated for a while to reduce inflation.

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Rival factions battled across&nbsp;Libya's capital&nbsp;in the worst fighting there in two years as a months-long political standoff burst into urban warfare that threatens to escalate into a wider conflict. Understand why the conflict erupted.&nbsp;

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<a href="https://www.wionews.com/world/after-twitter-announced-pre-bunking-google-starts-experimenting-with-the-same-511219">After Twitter announced pre-bunking, Google starts experimenting with the same</a>

Google is working with social scientists from Cambridge University, experimenting on a feature called 'pre-bunking'. As the name suggests, Google is attempting to get ahead of misleading narratives and debunk the lies before they can spread further.&nbsp;

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/07/23/281362-google.jpg" />

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Telecom companies Ericsson and Nokia have given deadlines for exiting the Russian market. While the Swedish giant will be winding down its operations in the coming months, its Finnish rival Nokia will bring down shutters by the year-end.&nbsp;

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Days after releasing her new single with Sir Elton John, Britney Spears posted a brutally honest 22-minute long audio clip on her Youtube and Twitter pages detailing the horrors of conservatorship. The clip, however, was deleted later.&nbsp;

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Team India superstar Virat Kohli won the hearts of many with his brilliant gesture for Pakistan pacer Haris Rauf after the blockbuster clash between the two sides in Asia Cup 2022 on Sunday (August 28). Kohli gifted a signed jersey to Rauf following India's five-wicket victory against Babar Azam &amp; Co. at the Dubai International Stadium.

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/08/29/291449-kohli-jersey.png" />

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&nbsp;

One of the most influential leaders in Iraq, Moqtada al-Sadr on Monday announced via Twitter that he was quitting politics. The announcement led to total chaos in the capital city of Baghdad.

One of the most influential leaders in Iraq, Moqtada al-Sadr on Monday announced via Twitter that he was quitting politics. The announcement led to total chaos in the capital city of Baghdad. Meanwhile, NASA's highly ambitious Artemis 1 mission was suspended indefinitely after the SLS developed some technical issues. Read these and more below. Click on the headlines to read more Iraq: Protests and firing after Sadr's political exit, army declares curfew Iraqi army has declared a nationwide curfew after supporters of Shiite cleric Moqtada Sadr stormed government buildings in Baghdad's Green Zone. The curfew will come into effect from 7 pm local time (1600 GMT) on Monday, August 29. The protests erupted on the same day of declaration from Sadr of a political exit. NASA postpones Artemis-1 launch due to technical reasons NASA has postponed the delay-stricken launch of Artemis-1 mission due to technical reasons. Preparations were on for the launch on Monday (August 29). However, the countdown clock was put on hold 40 minutes from the launch. The lift-off was scheduled to take place at 1803 IST. Amid a spike in Covid cases, China closes world's largest electronic market in Shenzhen Amid rising coronavirus cases, the Chinese authorities on Monday announced the closing of the world's largest electronics market of Huaqiangbei in Shenzhen. The closure follows President Xi Jinping's highly criticised 'zero-Covid tolerance' policy. Terrible winters await Europe for the next 5-10 years, warns Belgian Energy Minister Europe is reeling under a major energy crisis in the backdrop of the Russia-Ukraine war. Now, Belgian Energy Minister Tinne Van der Straeten has shot off a warning that the continent faces terrible winters for the next 5-10 years if no cap is put on the gas prices. Fortunes of America’s richest people slashed by $78bn after Fed chief Powell's speech During his speech, which was eight minutes long, Powell pointed out that the US central bank will keep raising interest rates and probably leave them elevated for a while to reduce inflation. Libya crisis: Why did deadly battles erupt across Tripoli? Rival factions battled across Libya's capital in the worst fighting there in two years as a months-long political standoff burst into urban warfare that threatens to escalate into a wider conflict. Understand why the conflict erupted. After Twitter announced pre-bunking, Google starts experimenting with the same Google is working with social scientists from Cambridge University, experimenting on a feature called 'pre-bunking'. As the name suggests, Google is attempting to get ahead of misleading narratives and debunk the lies before they can spread further. A day after Dell, Ericsson and Nokia announce plans to wind operations in Russia Telecom companies Ericsson and Nokia have given deadlines for exiting the Russian market. While the Swedish giant will be winding down its operations in the coming months, its Finnish rival Nokia will bring down shutters by the year-end. Britney Spears recounts horrors of conservatorship in new audio clip, deletes it later Days after releasing her new single with Sir Elton John, Britney Spears posted a brutally honest 22-minute long audio clip on her Youtube and Twitter pages detailing the horrors of conservatorship. The clip, however, was deleted later. Virat Kohli gifts signed jersey to Pakistan pacer, wins hearts with his heartwarming gesture - WATCH Team India superstar Virat Kohli won the hearts of many with his brilliant gesture for Pakistan pacer Haris Rauf after the blockbuster clash between the two sides in Asia Cup 2022 on Sunday (August 28). Kohli gifted a signed jersey to Rauf following India's five-wicket victory against Babar Azam & Co. at the Dubai International Stadium. WATCH WION LIVE HERE:

Top 10 world news: Moqtada al-Sadr quits politics, NASA postpones Artemis 1 launch & more

Telecom companies Ericsson and Nokia have given deadlines for exiting the Russian market. While the Swedish giant will be winding down its operations in the coming months, its Finnish rival Nokia will bring down shutters by the year-end.

Telecom companies Ericsson and Nokia have given deadlines for exiting the Russian market. While the Swedish giant will be winding down its operations in the coming months, its Finnish rival Nokia will bring down shutters by the year-end. "By the end of the year, the vast majority of our employees in Russia will have moved on from Nokia, and we have vacated all of our offices. We will retain a formal presence in the country until the legal closure is completed." stated a Nokia spokesperson. It is pertinent to note that Ericsson had sent its 400-odd Russian employees on paid leave earlier this year while earmarking a sum of $95 million related to the moving expenses in its accounts book. WATCH | Gravitas: Russia becomes the world's most sanctioned country × Meanwhile, Nokia, which housed over 2,000 employees in the country had closed most operations, barring the maintenance of critical networks to fulfil the obligations. Ericsson and Nokia join the long list of more than 300 global companies to have exited the Russian market, ever since it invaded Ukraine. As reported by WION, on Sunday, US-based multinational technology giant Dell Technologies announced that it had completely ceased its operations in Russia. Read more: Few weeks after closing offices, Dell winds up its operations in Russia for good The company had halted the sales of its products and services in February, before closing the offices in mid-August. "Back in February, we made the decision to not sell, service, or support products in Russia, Belarus, and the Donetsk and Luhansk regions of Ukraine, in addition to the already embargoed Crimea," Dell spokesman Mike Siemienas was quoted as saying by Reuters. As reported extensively by WION, brands like McDonald's, Starbucks, Coca-Cola, Zara, H&M, and Netflix have all suspended operations in Russia. Spotify and Amazon have also hit a pause on their services in the country. Read More: McDonald's to leave Russia after more than three decades over Ukraine conflict Meanwhile, Citi bank, Goldman Sachs, IBM, Intel, Snapchat and Twitter are few of the other banking and technological giants to turn their backs on Russia. (With inputs from agencies) WATCH WION LIVE HERE:

A day after Dell, Ericsson and Nokia announce plans to wind operations in Russia

After shutting its offices earlier in the month, US-based multinational technology giant Dell Technologies on Saturday (August 27) announced that it had completely ceased its operations in Russia.

After shutting its offices earlier in the month, US-based multinational technology giant Dell Technologies on Saturday (August 27) announced that it had completely ceased its operations in Russia. With the termination, Dell has joined the list of more than 300 global companies to have exited the Russian market, ever since it invaded Ukraine. Unlike other companies that acted on a whim and tried to wind up operations rather too quickly and suffered losses, Dell did it in phases. It halted the sales of its products and services in February, before closing the offices in mid-August. "Back in February, we made the decision to not sell, service, or support products in Russia, Belarus, and the Donetsk and Luhansk regions of Ukraine, in addition to the already embargoed Crimea," Dell spokesman Mike Siemienas was quoted as saying by Reuters. WATCH | Gravitas: Russia becomes the world's most sanctioned country × Meanwhile, according to state-run news agency TASS which quoted Russian deputy industry and trade minister Vasily Shpak, the majority of employees at Dell had been absorbed by Russian producers. "We are monitoring the development of the situation. According to our data, the vast majority of Dell's R&D centre specialists and support engineers in St. Petersburg and Moscow have already received job offers with competitive pay from Russian producers," said Shpak Read More: McDonald's to leave Russia after more than three decades over Ukraine conflict As reported extensively by WION, brands like McDonald's, Starbucks, Coca-Cola, Zara, H&M, and Netflix have all suspended operations in Russia. Spotify and Amazon have also hit a pause on their services in the country. Meanwhile, Citi bank, Goldman Sachs, IBM, Intel, Snapchat and Twitter are few of the other banking and technological giants to turn their backs on Russia. On the contrary, in Ukraine, after months of upheaval, the companies are starting to open their shutters. Reportedly, global fast-food giant McDonald, earlier this month announced that it was gearing for a phased reopening of its outlets in the war-torn country. Read more: McDonald's to open in a phased manner in Ukraine for the first time since war began (With inputs from agencies) WATCH WION LIVE HERE:

Few weeks after closing offices, Dell winds up its operations in Russia for good

Elon Musk has been dominating headlines with his buyout of Twitter and there has been no dearth of opinions from various sectors. Musk was able to finalise the deal to buy social media platform for a massive $44 billion in cash and said that he has plans to make it a private company.

Also read |&nbsp;<a href="https://www.wionews.com/world/elon-musk-reveals-intentions-to-monetize-tweets-and-cut-salaries-as-part-of-his-pitch-to-bank-lenders-474812">Musk unveils plans to monetize tweets, cut salaries in his pitch to lenders</a>

Dell Technologies founder and CEO Michael Dell took to Twitter to compare Musk’s actions with his own company going private in 2013 and EMC going private in 2016.

On the social media site, Dell tweeted - “Here are the similarities and differences between @elonmusk take private of @Twitter and our @Dell take private in 2013 and @EMC take private in 2016. 1/137."

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
Here are the similarities and differences between <a href="https://twitter.com/elonmusk?ref_src=twsrc%5Etfw">@elonmusk</a> take private of <a href="https://twitter.com/Twitter?ref_src=twsrc%5Etfw">@Twitter</a> and our <a href="https://twitter.com/Dell?ref_src=twsrc%5Etfw">@Dell</a> take private in 2013 and <a href="https://twitter.com/emc?ref_src=twsrc%5Etfw">@EMC</a> take private in 2016 
 
1/137 🧵
— Michael Dell (@MichaelDell) <a href="https://twitter.com/MichaelDell/status/1519743807566147585?ref_src=twsrc%5Etfw">April 28, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Dell managed to get out of a tough situation in 2013 as they became a private company and with help from with Silver Lake and Microsoft, the founder was able to take the company private.

In 2016, Dell took over data management company EMC for $67 billion and together, they are currently known as Dell Technologies.

Although the tweet was marked ‘1/137’, it remains to be seen whether there will be more tweets to follow as a lot of Twitter users were left confused by the lack of a thread.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
🤣
— Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1519830218319486986?ref_src=twsrc%5Etfw">April 29, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

In response, Elon Musk just posted a laughing emoticon under Dell’s tweet.

Earlier, Musk decided to sell 4.4 million shares of his car company – Tesla – in order to fund his massive acquisition of Twitter. The sell of the shares worth $3.9 billion was confirmed on the US securities filings. However, Musk made it clear that he will not be selling any more Tesla stocks.

Elon Musk has been dominating headlines with his buyout of Twitter and there has been no dearth of opinions from various sectors. Musk was able to finalise the deal to buy social media platform for a massive $44 billion in cash and said that he has plans to make it a private company.

Elon Musk has been dominating headlines with his buyout of Twitter and there has been no dearth of opinions from various sectors. Musk was able to finalise the deal to buy social media platform for a massive $44 billion in cash and said that he has plans to make it a private company. Also read | Musk unveils plans to monetize tweets, cut salaries in his pitch to lenders Dell Technologies founder and CEO Michael Dell took to Twitter to compare Musk’s actions with his own company going private in 2013 and EMC going private in 2016. On the social media site, Dell tweeted - “Here are the similarities and differences between @elonmusk take private of @Twitter and our @Dell take private in 2013 and @EMC take private in 2016. 1/137." Here are the similarities and differences between @elonmusk take private of @Twitter and our @Dell take private in 2013 and @EMC take private in 2016 1/137 🧵 — Michael Dell (@MichaelDell) April 28, 2022 × Dell managed to get out of a tough situation in 2013 as they became a private company and with help from with Silver Lake and Microsoft, the founder was able to take the company private. In 2016, Dell took over data management company EMC for $67 billion and together, they are currently known as Dell Technologies. Although the tweet was marked ‘1/137’, it remains to be seen whether there will be more tweets to follow as a lot of Twitter users were left confused by the lack of a thread. 🤣 — Elon Musk (@elonmusk) April 29, 2022 × In response, Elon Musk just posted a laughing emoticon under Dell’s tweet. Earlier, Musk decided to sell 4.4 million shares of his car company – Tesla – in order to fund his massive acquisition of Twitter. The sell of the shares worth $3.9 billion was confirmed on the US securities filings. However, Musk made it clear that he will not be selling any more Tesla stocks.

Elon Musk responds to Dell founder's cryptic '1/137' tweet after Twitter takeover

Several major <a href="https://www.wionews.com/world/us-hits-chinese-firm-sinovel-with-15-mn-fine-for-stealing-technology-149666">US-based technology</a> companies are planning to shift substantial production out of China, spurred by a bitter trade war between <a href="https://www.wionews.com/world/4th-july-celebrations-battle-tanks-arrive-in-washington-trump-promises-incredible-flyovers-biggest-ever-fireworks-232578">Washington</a> and Beijing, the Nikkei reported on Wednesday, citing sources.

Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei.

Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp and Nintendo Co Ltd are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added.

US President Donald Trump and <a href="https://www.wionews.com/world/xi-jinping-heads-to-north-korea-to-meet-kim-jong-un-ahead-of-trump-talks-228852">Chinese President Xi Jinping</a> struck a truce at last weekend's Group of 20 summits in Japan, paving the way for a restart in trade talks after months of stalemate.

However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country.

In June, Apple Inc asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month.

HP, Dell, Amazon, Microsoft and Google did not immediately respond to a Reuters' request for comment.

Several major US-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources.

Several major US-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources. Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei. Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp and Nintendo Co Ltd are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added. US President Donald Trump and Chinese President Xi Jinping struck a truce at last weekend's Group of 20 summits in Japan, paving the way for a restart in trade talks after months of stalemate. However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country. In June, Apple Inc asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month. HP, Dell, Amazon, Microsoft and Google did not immediately respond to a Reuters' request for comment.

HP, Dell, other tech firms plan to shift production out of China: Nikkei

Chinese telecom&nbsp;giant Huawei plans a global expansion into computers, it said on Tuesday, posing a fresh challenge to established PC players in a market that has suffered two years of falling sales volumes and pressure on margins.

At a news conference in Berlin, the Shenzhen-based company introduced its first line-up of three personal computer models, including a 15.6-inch screen notebook, a 2-in-1 tablet-notebook&nbsp;hybrid and an ultra slim, metallic 13-inch notebook.

Initially, Huawei plans to target the premium-priced consumer market, competing with Lenovo, HP and Dell, which together sell more than 50 per cent of all PCs. To a lesser extent, it will also go up against Apple&#39;s high-end, but shrinking, Mac computer business.

Huawei&#39;s Matebook X is a fanless notebook with splash-proof screen and combined fingerprint sign-on and power button, priced between 1,399 and 1,699 euros ($1,570-$1,900). Its Matebook E 2-in-1 hybrid will run from 999 to 1,299 euros while the Matebook D with 15.6-inch display is priced at 799 to 999 euros, it said.

Overall, PC market sales volumes dropped 8.3 per cent in 2015 and a further 3.7 per cent in 2016, according to research firm Gartner, which has predicted a flat outcome this year and increasing market consolidation through 2020.

&quot;From Huawei&#39;s perspective, we see opportunities in the PC market&#39;s decline,&quot; Cheng Lei, senior marketing manager for the PC business, said in a phone interview of the cost-savings and design and manufacturing benefits it gets from its smartphone business.

Huawei, the world&#39;s top maker of wireless and fixed-line telecoms equipment, emerged two years ago as the world&#39;s No. 3 smartphone maker after Samsung and Apple, displacing Lenovo, which remains focused on its computer business.

Huawei&#39;s new PCs all run seventh-generation Intel microprocessors, Microsoft Windows 10 software and in-house developed software to automate data transfers between Huawei smartphones and its new computer models, Lei said.

Huawei said it aimed to offer the new PCs in 12 countries in Europe, North America, Asia, and the Middle East in early June.

On Monday, HP, the No.2 PC maker behind China&#39;s Lenovo and ahead of No.3 Dell, introduced three new consumer models with mostly similar hardware specifications that boasted short-term pricing discounts and a bundle of popular third-party software.

Long-term play

In recent years, the big three PC makers have grabbed most of the growth and market share at the expense of other, declining brands, thanks to their diversification and strong position in the commercial PC market. Lenovo and HP each hold around 20 per cent while Dell has a 15 per cent share globally.

Business PC replacement demand remains stable, Gartner data shows, offsetting shrivelling consumer PC demand in recent years as users rely on bigger-screen smartphones and tablets and cloud data storage instead of new PCs for their basic computing needs.

&quot;If you are in a good position in the business market, you will have more opportunities to increase share,&quot; said Gartner consumer and small business devices analyst Mikako Kitagawa.

Huawei plans to keep its PC portfolio simple at first, by focusing on premium consumers while putting off any decision on a move into commercial PCs. &quot;We are now quite confident and will try to expand in new segments in a couple of years,&quot; Lei said.

&quot;Our investment in the PC industry is not short-term,&quot; the Huawei executive said. &quot;We will have a long-term investment, not only in marketing but in R&amp;D.&quot;

But Huawei, which has a history of subsidising its entry into new product markets with profits from its network business, two months ago pledged to scale back on heavy marketing in its phone division in favour of more profitable overall growth.

In March, Huawei reported flat net profits for 2016 of just over $5 billion on revenue of more than $75 billion.

Huawei also must contend with a slowing smartphone market. Last year, phone shipments fell 1.6 per cent, Gartner estimates, and while they are tipped for modest growth of 3.5 per cent in 2017, they now count on replacements instead of new users.

A year ago, Chinese smartphone rival Xiaomi offered its first laptop aimed at mid-priced consumer users, priced around $525, in one of the most competitive segments of the business.

Gartner&#39;s Kitagawa said PC-dependent firms had struggled to continue to invest as unit volumes decline and profits shrink compared with the industry levels of 10 or 15 years ago.

&quot;The new vendors already expect they aren&#39;t going to make a lot of money,&quot; she said. &quot;They have a different mentality&quot;.

(Reuters)

Huawei plans to target the premium-priced consumer market, competing with Lenovo, HP and Dell

Chinese telecom giant Huawei plans a global expansion into computers, it said on Tuesday, posing a fresh challenge to established PC players in a market that has suffered two years of falling sales volumes and pressure on margins. At a news conference in Berlin, the Shenzhen-based company introduced its first line-up of three personal computer models, including a 15.6-inch screen notebook, a 2-in-1 tablet-notebook hybrid and an ultra slim, metallic 13-inch notebook. Initially, Huawei plans to target the premium-priced consumer market, competing with Lenovo, HP and Dell, which together sell more than 50 per cent of all PCs. To a lesser extent, it will also go up against Apple's high-end, but shrinking, Mac computer business. Huawei's Matebook X is a fanless notebook with splash-proof screen and combined fingerprint sign-on and power button, priced between 1,399 and 1,699 euros ($1,570-$1,900). Its Matebook E 2-in-1 hybrid will run from 999 to 1,299 euros while the Matebook D with 15.6-inch display is priced at 799 to 999 euros, it said. Overall, PC market sales volumes dropped 8.3 per cent in 2015 and a further 3.7 per cent in 2016, according to research firm Gartner, which has predicted a flat outcome this year and increasing market consolidation through 2020. "From Huawei's perspective, we see opportunities in the PC market's decline," Cheng Lei, senior marketing manager for the PC business, said in a phone interview of the cost-savings and design and manufacturing benefits it gets from its smartphone business. Huawei, the world's top maker of wireless and fixed-line telecoms equipment, emerged two years ago as the world's No. 3 smartphone maker after Samsung and Apple, displacing Lenovo, which remains focused on its computer business. Huawei's new PCs all run seventh-generation Intel microprocessors, Microsoft Windows 10 software and in-house developed software to automate data transfers between Huawei smartphones and its new computer models, Lei said. Huawei said it aimed to offer the new PCs in 12 countries in Europe, North America, Asia, and the Middle East in early June. On Monday, HP, the No.2 PC maker behind China's Lenovo and ahead of No.3 Dell, introduced three new consumer models with mostly similar hardware specifications that boasted short-term pricing discounts and a bundle of popular third-party software. Long-term play In recent years, the big three PC makers have grabbed most of the growth and market share at the expense of other, declining brands, thanks to their diversification and strong position in the commercial PC market. Lenovo and HP each hold around 20 per cent while Dell has a 15 per cent share globally. Business PC replacement demand remains stable, Gartner data shows, offsetting shrivelling consumer PC demand in recent years as users rely on bigger-screen smartphones and tablets and cloud data storage instead of new PCs for their basic computing needs. "If you are in a good position in the business market, you will have more opportunities to increase share," said Gartner consumer and small business devices analyst Mikako Kitagawa. Huawei plans to keep its PC portfolio simple at first, by focusing on premium consumers while putting off any decision on a move into commercial PCs. "We are now quite confident and will try to expand in new segments in a couple of years," Lei said. "Our investment in the PC industry is not short-term," the Huawei executive said. "We will have a long-term investment, not only in marketing but in R&D." But Huawei, which has a history of subsidising its entry into new product markets with profits from its network business, two months ago pledged to scale back on heavy marketing in its phone division in favour of more profitable overall growth. In March, Huawei reported flat net profits for 2016 of just over $5 billion on revenue of more than $75 billion. Huawei also must contend with a slowing smartphone market. Last year, phone shipments fell 1.6 per cent, Gartner estimates, and while they are tipped for modest growth of 3.5 per cent in 2017, they now count on replacements instead of new users. A year ago, Chinese smartphone rival Xiaomi offered its first laptop aimed at mid-priced consumer users, priced around $525, in one of the most competitive segments of the business. Gartner's Kitagawa said PC-dependent firms had struggled to continue to invest as unit volumes decline and profits shrink compared with the industry levels of 10 or 15 years ago. "The new vendors already expect they aren't going to make a lot of money," she said. "They have a different mentality". (Reuters)

Huawei enters PC market with three new personal computer models

Michael Dell and Silver Lake Partners underpriced their 2013 $24.9 billion buyout of Dell Inc [DI.UL] by about 22 per cent, and may have to pay tens of millions to investors who opposed the deal for the computer maker, a Delaware judge ruled on Tuesday. 
 
The ruling, which applies to about 5.5 million Dell shares, is a victory for the specialized hedge funds that have increasingly tried to squeeze more money from mergers using a type of lawsuit known as appraisal. 
 
The lawsuits allow investors who oppose a deal, such as the bitterly contested Dell buyout, to sue and ask a Delaware judge to determine a fair deal price. 
 
Activist investor Carl Icahn urged Dell shareholders to vote down the deal and take their case for fair value to court. Initially around 40 million shares sought appraisal, although the bulk were removed for procedural reasons.&nbsp; 
 
In Tuesday`s ruling, Vice Chancellor Travis Laster said fair value was $17.62 per share, not the $13.75 per share deal price. 
With interest, investors who sought appraisal will collect about $20.84 per share. 
 
The Dell investors presented evidence that fair value was $28.61 per share, which would have cost Michael Dell and Silver Lake hundreds of millions of dollars. The buyers` contended fair value was $12.68. 
 
Dell and a lawyer for the stockholders, Stuart Grant, declined to comment. Tuesday`s ruling can be appealed.&nbsp; 
Laster said the Dell buyout took advantage of a dip in the company`s stock price and its board never determined the intrinsic value before negotiating. 
 
&quot;The original merger consideration was dictated by what a financial sponsor could pay and still generate outsized returns,&quot; wrote Laster. 
The judge dedicated much of the opinion to explaining why deal price was not a fair value indicator, particularly in a management-led buyout. Delaware judges had used deal price in appraisals involving the closely watched buyouts of Ancestry.com in 2012 and BMC Software Inc in 2013. 
 
The added cost to the buyers from Tuesday`s ruling is about $36 million. 
 
About 3.9 million appraised shares were held by affiliates of Magnetar Capital.&nbsp; 
 
A small number of hedge funds have built a strategy of swooping in just before a deal closes, when there is less risk a deal would collapse, and buying stock for the sole purpose of seeking appraisal. 
 
Investors who seek appraisal do not get paid at the deal`s closing, but they collect interest of 5 percentage points above the federal discount rate while the case is pending. The U.S. Chamber of Commerce has complained that encourages hedge funds to bring cases because they can earn a return even when a deal price is found to be fair. 
 
One of the biggest losers from the Dell case may be T Rowe Price, one of the few mutual fund managers to test the appraisal strategy. 
Dell was able to knock out T Rowe Price`s stock, which was the bulk of the shares in the case, because the fund manager mistakenly voted in favour of the buyout. 
 
T Rowe Price stood to collect around $190 million if its Dell stock had been appraised. Laster also ruled on Tuesday the fund manager was not entitled to interest on its shares. 
 
&quot;T Rowe Price runs mutual funds and allocates capital, but they may regret trying to do this themselves,&quot; said Minor Myers, a professor at Brooklyn Law School in New York. &quot;This is just one of the pitfalls with appraisal, and it`s not for novices&quot;.

Michael Dell and Silver Lake Partners hugely underpriced their 2013 $24.9 billion buyout of Dell Inc, and may have to pay tens of millions to investors

Michael Dell and Silver Lake Partners underpriced their 2013 $24.9 billion buyout of Dell Inc [DI.UL] by about 22 per cent, and may have to pay tens of millions to investors who opposed the deal for the computer maker, a Delaware judge ruled on Tuesday. The ruling, which applies to about 5.5 million Dell shares, is a victory for the specialized hedge funds that have increasingly tried to squeeze more money from mergers using a type of lawsuit known as appraisal. The lawsuits allow investors who oppose a deal, such as the bitterly contested Dell buyout, to sue and ask a Delaware judge to determine a fair deal price. Activist investor Carl Icahn urged Dell shareholders to vote down the deal and take their case for fair value to court. Initially around 40 million shares sought appraisal, although the bulk were removed for procedural reasons. In Tuesday`s ruling, Vice Chancellor Travis Laster said fair value was $17.62 per share, not the $13.75 per share deal price. With interest, investors who sought appraisal will collect about $20.84 per share. The Dell investors presented evidence that fair value was $28.61 per share, which would have cost Michael Dell and Silver Lake hundreds of millions of dollars. The buyers` contended fair value was $12.68. Dell and a lawyer for the stockholders, Stuart Grant, declined to comment. Tuesday`s ruling can be appealed. Laster said the Dell buyout took advantage of a dip in the company`s stock price and its board never determined the intrinsic value before negotiating. "The original merger consideration was dictated by what a financial sponsor could pay and still generate outsized returns," wrote Laster. The judge dedicated much of the opinion to explaining why deal price was not a fair value indicator, particularly in a management-led buyout. Delaware judges had used deal price in appraisals involving the closely watched buyouts of Ancestry.com in 2012 and BMC Software Inc in 2013. The added cost to the buyers from Tuesday`s ruling is about $36 million. About 3.9 million appraised shares were held by affiliates of Magnetar Capital. A small number of hedge funds have built a strategy of swooping in just before a deal closes, when there is less risk a deal would collapse, and buying stock for the sole purpose of seeking appraisal. Investors who seek appraisal do not get paid at the deal`s closing, but they collect interest of 5 percentage points above the federal discount rate while the case is pending. The U.S. Chamber of Commerce has complained that encourages hedge funds to bring cases because they can earn a return even when a deal price is found to be fair. One of the biggest losers from the Dell case may be T Rowe Price, one of the few mutual fund managers to test the appraisal strategy. Dell was able to knock out T Rowe Price`s stock, which was the bulk of the shares in the case, because the fund manager mistakenly voted in favour of the buyout. T Rowe Price stood to collect around $190 million if its Dell stock had been appraised. Laster also ruled on Tuesday the fund manager was not entitled to interest on its shares. "T Rowe Price runs mutual funds and allocates capital, but they may regret trying to do this themselves," said Minor Myers, a professor at Brooklyn Law School in New York. "This is just one of the pitfalls with appraisal, and it`s not for novices".

US court rules $24.9 billion Dell buyout underpriced by 22 per cent

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