IBM Earnings Report Reflects Soft Corporate Spending
from the ruh-roh dept
The tech earnings picture continues to look decidedly mixed. Last week, chip maker AMD came out with awful results, while its rival Intel managed to report decent earnings, even as it acknowledged that a price war was causing it some pain. Last night, one of the ultimate tech bellwethers, IBM, released its quarterly results, and while the initial numbers looked good, some see cause for concern. Because IBM is so diversified across multiple business lines and has such a broad customer base, its results are a pretty good proxy for tech spending as a whole. Although the company's earnings gained, it said that its US business actually shrank amidst an overall slowdown in tech spending by enterprise customers. This is a pretty ominous sign for a number of companies that are dependent on corporate spending for most of their revenue, so it'll be interesting to see whether this softness continues to be reflected in more of their earnings.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
Its a LEAN LEAN LEAN LEAN world...
[ link to this | view in chronology ]