SAN FRANCISCO (November 19, 2009)--Dell Inc. says its latest quarterly profit dropped 54 percent as the company battles a slump that cost it its ranking as the world's No. 2 personal computer maker.

Rivals Hewlett-Packard Co. and Acer Inc. have stolen business from Dell as the company grapples with anemic spending on technology by corporations and government agencies.

Those large customers make up 80 percent of Dell's business.

Round Rock-based Dell says some areas are improving but repeated its earlier prediction that a meaningful improvement in technology spending by big businesses won't come until next year.

Dell said after the market closed Thursday that its net income was $337 million, or 17 cents per share, in the three months ended Oct. 30.

Revenue fell 15 percent to $12.9 billion.