Dell struggles as Q3 profits drop by 47 per cent

The consumer market is improving with the launch of the Windows 8 software from Microsoft, which has been designed with touchscreen devices and Internet-based computing in mind, Gladden said.

But sales of devices featuring the Windows 8 software have yet to ramp up while Microsoft is already in the market with its new Surface tablet computer, which may hurt PC sales.

Apart from the consumer, Dell's business customers have held back spending, which could be partly attributed to the looming fiscal cliff, Gladden said.

The fiscal cliff involves $600 billion in automatic tax hikes and spending cuts effective in early 2013 if US lawmakers fail to agree on reducing the budget deficit.

The cuts could take a toll on consumer and government spending and cause the economy to stall.

"I would tell you that the behavior we are seeing from our customers today is actually driven by that uncertainty," Gladden said. "It's not like it's all going to happen overnight. It's affecting our business today."

Dell is ensuring that it has access to cash in case there is no congressional action.

"I would say there are several things we are doing from a planning standpoint, especially on the treasury side to ensure that we are in a position to have appropriate access to liquidity," Gladden said, adding that Dell is making sure it has access to lines of credit and commercial paper.

Dell shares fell 2.3 per cent to $9.36 in after-market trade from its close of $9.56. The shares initially rose following the release of the results.

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