Dell Inc. announced disappointing earnings results for the most recent quarter, leading to a significant drop in its stock value. The company’s performance was impacted by rising component expenses and intense competition in the personal computer market. These challenges have raised concerns among investors regarding the company’s ability to sustain profitability in the coming periods.

According to Dell, increased costs for memory and LCD panels, coupled with aggressive pricing strategies employed by rivals such as HP and Gateway, put downward pressure on profit margins. The company stated that it would implement cost-cutting measures and explore new market segments to address these issues. However, analysts remain skeptical, pointing to the broader trend of commoditization in the PC industry.

The stock closed down 10% today, reaching its lowest point in nearly two years. The company has scheduled an investor conference call tomorrow to discuss the results in more detail and outline its strategy for recovery.