Dell Q1 has been facing fierce competition from rivals and this resulted into the fall of its net income to a noticeable 18 percent in the first quarter.

The company now plans to use chips from Advanced Micro Devices Inc. for the first time. The process will be started by the end of 2006 once AMD offers the services to Dell Q1.

Dell earned $762 million culminating to 33 cents per share in three months as on May 5. This is start contrast what is earned lasts year. Last year Round Rock-based Dell is known to earn $934 million or 37 cents per share.

The difference amount is much less than expected by Wall Street analysts who anticipated 38 cents per share on revenue of $14.5 billion.

Dell further saw a reduction in its earnings last week. It was around 36 cents per share due to “Pricing Issues”.

Kevin Rollins, CEO of Dell stated in an interview that there was much intense competition than the organization has planned or understood.

Dell however claimed the first-quarter sales rose 6 percent from the last year.

The Dell plans to deny the issue of quarterly guidance & earnings per share & would focus on long-term factors that would influence the performance & productivity of the organization.