Feeds

IBM PC business takes a hammering

Services look rosy

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

IBM has reported a 19 per cent decline in Q3 profits, saying sales were dragged below estimates by the global economy downturn.

Sales for the quarter, ended 30 September, hit $20.4 billion, down from $21.78 billion a year earlier.

PC, hard disk, and distributed software sales were all hit by deferred spending. The company's hardware division reported a 21 per cent drop in revenue to $7.5 billion; PC sales slumped by 29 per cent. Lou Gerstner, IBM chairman and chief executive, said: "The PC segment of our industry remains in trouble, and this negatively affected our PC and hard disk drive businesses."

IBM claimed servers had performed well and that it had grabbed market share in the Unix sector. It said revenues from z900 mainframe servers grew strongly, revenues from the iSeries mid- market servers increased in all geographic areas, while pSeries revenues declined in part because customers were awaiting the new Regatta servers.

IBM Global Services brought in $8.7 billion in the quarter, up five per cent on the year-ago quarter. This is the second consecutive quarter that the division has made up the major slice of IBM's sales.

Gerstner said: "The third quarter saw an acceleration of the fundamental shift in customer buying behaviour that is altering our industry's landscape. Customers now allocate an increasing percentage of their spending to solutions, not boxes."

IBM signed $10 billion in services contracts and concluded the quarter with a contract backlog of $97 billion. ®

Related Stories

POWER4 debuts in IBM Regatta

The essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
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
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.