Question-and-Answer Session
Operator
(Operator Instructions) Our next question comes from Richard Gardner - Citigroup.
Richard Gardner - Citigroup
Thank you very much. You made mention of pricing too aggressively in the quarter in a decelerating demand environment. You also made mention several times of balancing revenue growth and profitability. I'm just wondering if that means that pricing and margins are going to rebound in the third quarter and beyond? Or I was hoping you could give us a little more detail on exactly what you're doing with pricing here on a go-forward basis.
Kevin Rollins
I will talk a little bit about the pricing strategies. Real clear on this, we don't think we did a good job of that in the Q2 timeframe. We were overly aggressive in a slowing marketplace, and in a situation where component prices didn't come down as we had thought, so we had margin squeeze. In the future we're going to be a bit more circumspect on our pricing strategy, more careful.
However, we're not backing off and moving into a margin harvesting and loss of share situation. We're going to continue to gain share, but we're going to do it, I think, a bit more thoughtfully and more carefully. And we're doing that through more circumspect review of list pricing, bid pricing and on the consumer side, as I mentioned, doing that with better promotional control and review of our advertising expenditures on pricing.
Richard Gardner - Citigroup
Just one other follow-up: could you confirm that there was no impact from a precipitous or sharp decrease in Intel co-marketing dollars on the gross margin in the quarter? Was this all related to pricing and component cost, or was there some other costs, like warranty or loss of co-marketing dollars, that also contributed to the sharp drop in gross margin in the quarter?
Kevin Rollins
We would probably not communicate anything on that. It is proprietary. We do believe that component prices did not come down as we had anticipated, but we wouldn't comment on any of our agreements with suppliers.
Richard Gardner - Citigroup
Thank you.
Operator
Our next question comes from Tony Sacconaghi - Sanford Bernstein.
Tony Sacconaghi - Sanford Bernstein
Thank you. I have two questions please. Kevin, in the current quarter it does appear as though Dell lost share. It grew units at 6%; the market, by your own admission, grew at 9%. So you lost share despite very aggressive pricing. So going forward, how do we think about pricing? You said you don't want to lose share, yet you priced very aggressively this quarter and you lost share.
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