Dell has announced its financial results for the fourth quarter and it seems consumers choosing cheaper computers - such as netbooks - has hurt the PC giant's profits.

Dell's net income dropped by nearly half, to $351 million for the quarter ended 31 January 2009, compared to $679 million for the same time frame last year.

However, proven cost cutting plans - and the news that the company is raising its cost cutting measures in 2009 to the tune of $4 billion, meant that analysts and investors received the news favourably.

In addition, chief executive Michael Dell said technology spending is "being deferred until there's better economic visibility".

Dell's shares rose 2.3% in after-hours trading after the results were revealed.