Thursday, March 3, 2011

Dell (DELL), IBM (IBM), Hewlett-Packard (HPQ) Still Holding Against Tablet Onslaught

Although it appears almost all the tech research companies, such as Gartner (NYSE:IT) are predicting a huge plummet in PC sales from the tablet, computer manufacturers like Dell (Nasdaq:DELL), IBM (NYSE:IBM) and Hewlett-Packard (NYSE:HPQ) continue to hold their own, as it seems the market is waiting for the numbers to come in before making any investment decisions.

Gartner reduced its PC sales outlook for 2011 and 2012, dropping 2011 estimates to 387.8 million units, a drop of 15.9 percent to 10.5% growth. For 2012 they lowered estimates to 440.6 million units sold, a decline of 14.8% to 13.6 percent growth.

Research Director Ranjit Atwal said, "These results reflect marked reductions in expected near-term unit growth based on expectations of weaker consumer mobile PC demand, in no small part because of the near-term weakness expected in China's mobile PC market, but also because of a general loss in consumer enthusiasm for mobile PCs."

Gartner sees the PC sales being transferred to companies like Apple (Nasdaq:AAPL), Motorola Mobility(NYSE:MMI), Research in Motion (Nasdaq:RIMM) and Hewlett-Packard. Hewlett-Packard will have to prove tablet sales will counter potential PC sale losses, assuming that is the actual scenario that plays out.

Hewlett-Packard was trading at $43.47, up $0.23, or 0.53 percent, as of 11:45 AM EST. Dell was at $15.68, up $0.24, or 1.55 percent. IBM was trading at $163.09, up $2.93, or 1.83 percent.

3 comments:

Anonymous said...

IBM is no longer in the PC business. They may be interested in integrating the new tablets, but Lenovo are the ones who need to figure out a tablet strategy.
Billd

Anonymous said...

Glad someone else made the correction. IBM sold its PC business a long time ago, and just recently divested the 4.3% ownership share it had remaining in Lenovo as part of the initial agreements ownership wind down.

Anonymous said...

IBM does not make PCs... how does this stuff even make it on google news...