Dell has revealed a 72 per cent drop in profits after introducing price drops to gain increased business.

In a letter to investors CFO Brian Gladden said: "Our efforts to improve growth have improved our share position at the expense of profitability".

The announcement comes a month before a major stakeholder meeting on the potential future privatisation of the company.

The decline in profits comes as the PC market continues to perform poorly with the 72 per cent decline giving a total income of $204 million.

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