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Dell is starting to show signs of a turnaround after the closing woe DPC maker posted better than their expected results for a second quarter.

That's right. Alice ,bussiness editor Eunice Yoon joins us now with more on that,um, is this the Michael Dell a fable driving the profit?

Well,What is driving the profit is better sales of servers, as well as storage systems, and also they are benefiting from lower component costs, component / being memory chips, disk drivers that arein your computers. Now that of course is helping to boost the earnings by 46% and the revenues were also higher at 14.8 billion dollars, and of course all of these are very positive for Dell, coz as you guys know Dell has been, has follown a very hard times, last year they had to deal with a massive battery recall, also they have been amidst of a year long accounting fraud which has led to a shake of their management the CEO, Kevin Rollins who is now the former CEO. He is given a boot. And Michael Dell end it up coming in to try to take the helm.

The covering, now by him?

Do you think this turnaround is sustainable though and any chances might overtake HP at any point?

Oh, man. That’s, I think that's really early to say too early to say. But,but Michael Dell himself said that right now, they are really at a too earlier stage to be able to say exactly what they are going to do of course they set out achievable targets, and they really hope to reclaim that proposition. But what people are saying is that you have to give them a little bit of time, in order to reach those targets because they are trying to do their best, I mean they shut thousands of jobs. They've also had to deal with many production delays especially with their new line of color computers. But one of the things that it's,it's a positive sign that this ,it is the second quarter in a row that they have been able to report better than / expected results.

It's interesting I guess the grade unknown here is the state of the economy, and more and more people are talking about perhaps the recession even in the second half in the US. So wAhat is the outlook for the PC industry for the second now? What did they say?

Well, Dell is saying that they see the costs of components,um,they... starting to slow, like at the rate at which,um they, you know, coz right now they are benefiting, because they are so cheap. But they are actually probably going to be declining at a slower pace so that could hurt the profits at Dell, as well as at HP and some of the other computer makers. So one of the things,things though that people are watching, is its relationship now with Wal-mart. Because as your guys know, Dell, has, you know, really made a name for itself because of its direct sales model, you know,they, you could call them up ,you could buy a computer on your, onthe internet and naturally what gave them that number one position. But they lost it to HP at least around the world because so many people would buy HP computers in the stores. So they want to see, so whatever anyone wants to see how this relationship works out.