Feeds

IBM PC business takes a hammering

Services look rosy

  • alert
  • submit to reddit

Security for virtualized datacentres

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

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.