Tip and All, If Ingram, the world's largest pc distributor, is giving early warnings that pc sales and their eps will suck, it is game, set and match for the bears.
Ingram is a very good co. and, as I said above, the biggest and smartest player in the channel. If they are going to see their growth rate fall from 50% a year two years ago to 35% last year to less than 25% this year, then there be no boom is pc sales this Xmas season. In fact, it looks like lesser distributors are going to be sucking wind.
And, if the channel is not selling at a high rate, what happens to all those boxes with Intel MPCs and Micron DRAMs and 3Com modems that will be stuffed in the channel at year end?
3 weeks ago, the CEO of Ingram was on CNBS calling for 15-20% growth in pc sales and for Ingram to beat the industry rates by a huge amount, as usual. At the time, I commented that I was saddened that a usually sober and honest company had been co-opted into the Xmas lies. And for them to be proven totally wrong or worse so soon is even sadder.
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