Dell's Most Profitable Sector Is Networking

Dell is a company with over $100 billion in revenue. Last quarter, it did more than $26 billion in revenue and grew at a quite amazing 9% rate for a company that size. But because it's a hardware company primarily, its margins are low,. With VMware on Dell's income statement before the spin, its gross margins were in the low 30s. It gives you a sense of what might have been had Dell chosen to hold on to that asset or spin it into the company. but let's face it, the alternatives from Michael Dell were just too attractive.