Dell Computer last night reported its third-quarter net income fell 36 per cent, as the personal computer maker led a price war and took market share from its rivals.

Dell said it saw its fourth-quarter revenues rising slightly over the third quarter, but said it expected industry-wide revenues to fall in the fourth quarter.

The Round Rock, Texas-based company, which employs about 5,500 people at plants in Limerick, Bray and Dublin, reported net income of $429 million (€486 million), or 16 US cents per share, slightly ahead of forecasts but well down on the $674 million, or 25 US cents per share, in the same period a year ago.

The company said it saw fourth-quarter earnings per share at 16 US cents.

Third-quarter sales were $7.5 billion, within the range the company had targeted in August when it told analysts to expect revenues that were flat to down 5 per cent from the second quarter's $7.6 billion.