Feeds

Software Stan denies falling demand in PC market

Slowdown, what slowdown

  • alert
  • submit to reddit

The essential guide to IT transformation

Microsoft said yesterday worldwide demand for PCs remained strong, despite a seasonal lag in sales. The great software giant reassured Wall Street analysts that business was fine, after profit warnings from computer companies had raised concerns about the PC market, according to today’s Financial Times. After the close of trading yesterday, Greg Maffei, Microsoft CFO, made the following statement: "We’ve seen some pre-announcements, some rumours of pre-announcements, some speculation that the PC business is falling apart." But he went on to reassure analysts: "All evidence that we see suggests that is not true." Maffei said the post-Christmas slowdown was "just like every year," adding that sales were in line with expectations for the current third quarter – apart from the $400 million in lost revenue from the delay in shipping Office 2000. Maffei said projections for the current quarter were $4.2 billion. Speaking to The Register, analysts said the industry was suffering from a slowdown in growth of demand, but were divided on when this would pick up. Andy Brown, IDC research analyst for EMEA PC market, said there was a definite growth slowdown in worldwide PC sales, but this should pick up by the end of 1999. "Microsoft is trying to reassure the stock market. It is worried about share price and confidence," he said. Brown added that the regions showing the greatest slowdown, according to IDC research, were Eastern Europe and the Middle East. But he stressed that this was not a drastic turn of events. "There isn’t a massive slow in demand. Key drivers like year 2000, the euro, increasing IT spend in businesses, PII migration and the Internet will bolster sales in the second half of 1999." Clive Longbottom, CSL analyst, thought the situation would not pick up this year. He said: "We can currently see a slowdown in growth of demand, and there will be a slowdown of demand itself in the second half of the year. This will probably continue until around next March." Microsoft’s announcement came at a time when fellow computer companies were complaining of weaker than predicted sales. 3Com recently warned its second quarter revenue would fall short of forecasts. The number two networking vendor cited decreasing demand in the US and Latin America as one reason. At the time, Eric Benhamou, 3Com chairman and CEO, said he was unsure whether this decline in the US was a temporary blip or a more long-term trend. But he said he understood his rivals were experiencing a similar situation. This year has also seen Dell, Hewlett Packard and Compaq reporting weaker than expected sales. Yesterday, US distributor Ingram Micro warned its first quarter earnings would be below expectations. It blamed cautious buying trends in Europe, Latin America and Asia. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?