Computer Makers Say Sales May Have Hit Low Water
Thursday April 18, 7:30 pm Eastern Time
By Nicole Volpe
biz.yahoo.com
NEW YORK (Reuters) - Computer makers, stretched to the limit by a slowdown in spending by both businesses and consumers, have posted dismal earnings this quarter, but executives and analysts said they see small signs that the market may yet snap back a bit this year.
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``The market clearly slowed down a lot, but we think we're going to see a bit of a rubber band effect,'' said International Data Corp. analyst Loren Loverde.
First-quarter results this week were a rough ride.
IBM (NYSE:IBM - news), the world's largest computer maker, reported its sharpest drop in earnings since 1993. Intel Corp. (NasdaqNM:INTC - news), the No. 1 chipmaker for personal computers, posted lower earnings than a year earlier.
Microsoft Corp. (NasdaqNM:MSFT - news), which makes the operating systems that run on most personal computers, posted disappointing sales. It also said that while personal computer sales to consumers may improve in the current second quarter, business spending would be ``quite modest.''
But in conference calls with Wall Street analysts, and in orders numbers that reflect future demand, there was some small sign of hope for the second half of the year. |
