Dell 4Q profit declines on slower growth

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Carty said Dell gained share in the consumer market even though some deals, such as Best Buy, occurred too late to add much to fourth-quarter sales. He said the benefits would be more obvious in the current quarter, which ends in April.

Shaw Wu, an analyst with American Technology Research, said it was "disappointing" that Dell shipped 19 percent more units but still missed Wall Street's targets for sales and profits. He concluded that Dell "sold a lot of low-end stuff" and cut prices in the face of tough competition.

"The store shelves are fairly crowded," Wu said. Hewlett-Packard Co. and Apple Inc. "are doing very well globally. Those are two really tough guys to compete with."

Goldman Sachs analyst David C. Bailey said Dell has taken steps toward a recovery, such as buying companies that sell technology services to small businesses. But he lowered his outlook for near-term earnings, citing two straight disappointing quarters.

To boost profits, Dell is trying to cut $3 billion to $4 billion in costs over several years. Last year, the company announced plans to cut 8,800 jobs or 10 percent of its work force. So far, it has cut 3,200, Carty said. The other reductions "may take us a little longer than we expected," he said.

On a conference call, an analyst asked Michael Dell how long it would take the company to raise its profit margins to those of competitors. Dell said it would be a good question to explore in April, when the company holds a meeting with analysts in Round Rock.

For the fiscal year that just ended, Dell earned $2.95 billion, up from $2.58 billion the year before. Revenue rose 6.5 percent to $61.13 billion.

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