John, here's a bit more on what Gerstner said from Dow Jones...
John
IBM's Gerstner: PC Industry Moving To
New Phase
Dow Jones Newswires
NEW YORK -- International Business Machines Corp. (IBM) Chairman
and Chief Executive Louis V. Gerstner said the PC industry, although
strong, is moving to a new phase called "network computing or e-business."
"The era of the PC is over," Gerstner said in an interview with Maria
Bartiromo on CNBC Thursday. "This preoccupation we've had with
providing computer capability to the desktop is over."
Gerstner said IBM's biggest opportunity and one that is starting to drive the
company's growth "is to bring our customers to this network world. To
show them and then deliver this promise we have of reaching out to our
customers, increasing their globalization that they have."
In discussing IBM's above-expectation third-quarter results, Gerstner said
IBM's services unit as the fastest growing part of its business. Computer
services have grown in importance because of technology's complexity, he
said.
"We have to do all the integration. It's like buying a car; you have to buy the
wheels, the steering wheel, the engine, and you have to put it all together. So
the customer is saying today, "we want solutions," Gerstner said.
Tuesday after the close, IBM reported above expectation third-quarter
earnings of $1.56 a share, up 16% from the $1.35 a share it earned a year
ago, and above Wall Street's consensus expectation of $1.53 a share.
Revenue increased 8% to $20 billion from $18.6 billion a year ago.
Gerstner said IBM's third-quarter "was strong across the board. We had
strong business in our hardware, terrific continuation in our growth in
services, software was strong, PCs returned from a very difficult first half."
IBM's problem areas during the quarter were in microelectronics and the
Asia Pacific region, he said.
Gerstner said in response to a question about grooming a successor that the
decision would be up to the board.
He added the company is satified with its "nice low undervalued multiple"
because the high ones mean that there is "no place to go but down.
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