Dell loses business from Philips worth around $700 million

US based world’s largest manufacturer of personal computers Dell has just lost a lucrative deal from Dutch company Philips Electronics. Philips has apparently cancelled a deal with Dell to provide it with hardware, software, and services.

This news comes just days after Dell lowered its earnings expectations for the current quarter. This contract was worth around USD 700 million. The deal was originally signed in December 2004 and required Dell to provide Philips with hardware, software, and managed services for a period of five years.

The deal covered Philips offices in around 60 countries worldwide. Philips spokesperson Jayson Otke said in a statement on this decision: “We concluded that in current form, it did not sufficiently guarantee success for completion.”

Dell is however optimistic and has said that despite this setback, Philips continues to remain a valuable customer of theirs and they hope to do more business with them in the future.

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