Wednesday, August 20, 2008

Dell, Hewlett-Packard sales prospects poor

Recently the dollar value of overseas sales to the market a lot of tension, although Dell and HP both companies have met or exceeded revenue Wall Street expected, but emerging market demand for its products will be affected to a certain extent, reduce the sales of their products.

HP and Dell is the world's No. 1 and No. 2 personal computer maker, the two companies is the key to success in the United States outside of their country's performance in the United States, the credit crunch, the deterioration of the city, accompanied by other economic issues Have affected consumer spending.

According to Reuters Estimates, analysts said Tuesday in the hope that HP's revenue amounted to 84 cents a share, a total 27.4 billion U.S. dollars before 2008 to report on its fiscal third-quarter revenue. Dell is expected to August 28 amounted to 36 cents a share, the total income of 15.9 billion U.S. dollars before 2009 to the second quarter of fiscal revenue.

"Although the United States and some European countries increasingly difficult business spending, reasonable growth in emerging countries continue to strengthen, monetary and product life cycle for each company can bring some benefits", Goldman Sachs analyst David Bailey in early August Wrote one customer mentioned.

Goldman said that HP and Dell can at least meet Wall Street expectations.

So far, such as Brazil, Russia, India and China (BRIC countries) for the Hewlett-Packard, Dell and many other large technology companies to increase global sales. In the U.S. economy is not any major signs of recovery time, these countries will slow down any future performance this year to create pressure.

"They are a very rapid development of the economy, but they are vulnerable to fluctuations", Robert W. Baird & Co Inc, an analyst Jayson Noland said.

"I think China can be said that everyone knows the country. She then hot and the final will be cooled down," he said. "Even if China's annual growth from 25% to 15%, it will lead to some volatility."

World No. 4 PC maker Lenovo Group Ltd. based in China, at the moment is facing slowing revenue growth, because of its need to address the devastating earthquake earlier this year caused by weak demand.

Even so, Needham & Co's Richard Kugele of August of the many expected a good quarter of an analyst. He said: "You will hear two notebooks have shown good performance and I think HP EDS still very optimistic and will spare no effort to persuade people through a conference call this point."

kugele referring to HP's 13.2 billion U.S. dollars acquisition of technology outsourcing company Electronic Data Systems Corp's plans to better communicate with the International Business Machines Corporation competition.

Goldman Sachs analyst David Bailey in a research report earlier this month told customers, the market may be outside the United States in the recent quarter growth to contribute.

"Inkjet printer market share growth, and laser printers even stronger growth in emerging markets, should promote a single-digit printer middle of another quarter-digit growth, sales of more than 15%", Bailey said. "Even in the face of a tough comparison, we expect HP's PC machine outside the United States will maintain double-digit revenue growth."

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