Major Business News -- WSJ Interactive Edition Personal-Computer Resellers Report Short Spring Slump June 19, 1997
Technology stocks have been roiled for weeks by recurring reports of a drop in computer demand. Wednesday, major resellers to corporations reported that there was, in fact, a slump that spilled over into April from the first quarter, but disappeared by May.
The resellers indicated that purchasing activity has accelerated greatly over the past two weeks, following a brisk May. They said the upsurge has been fueled by a strong increase in sales to corporate buyers, who contributed to the industry's first-quarter slowdown by holding off on major purchases as many sorted through a spate of new technology announcements.
"Corporate customers were putting everything on hold, but now it looks like everything is going crazy," said Ahmad Manshouri, general manager of operations for Vanstar Corp., a big reseller based in Pleasanton, Calif. Vanstar's personal-computer business so far this month is running 25% ahead of the same period in May, and the quarter is on track to exceed the business of the year-earlier quarter by an undisclosed amount.
Tech Data Corp., a reseller based in Clearwater, Fla., reported its second-quarter demand is running "at least as well as planned," while another reseller, MicroAge Inc. of Tempe, Ariz., reported "upwards" of 30% growth in PC-unit shipments this quarter compared with last quarter, and an increase of as much as 50% year-over-year on some models.
--Evan Ramstad contributed to this article. The full text of this article is available for subscribers to The Wall Street Journal Interactive Edition. |
