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IT channel thrives while PC sales struggle

by Scott Bicheno on 12 August 2010, 14:01

Tags: Acer (TPE:2353), Target Components, Cisco (NASDAQ:CSCO), Avnet (NYSE:AVT)

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Moment of truth?

In any economic cycle you get some periods of especially intense speculation, and we appear to be in one of those now. Over the past couple of days we've brought you macroeconomic news contributing to fears of a double-dip recession in the UK, but global technology industry is also producing some mixed data right now.

On the positive side, the world's biggest tech distie - Avnet - reported record revenue last quarter and this is mirrored on a local level by smaller disties like Castleford-based Target Components. Additionally Cisco has recently announced decent results, but many were hoping for more and its outlook for the next quarter was cautious.

And it's the next quarter that seems to have investors spooked. There have been a spate of analyst downgrades of PC related stocks resulting in a sustained sell-off over the past few days. We took a snapshot of share price changes since the beginning of the week while writing this piece, which you can see below.

Adding to this anxiety is evidence that orders for PCs are plummeting. Ominous analyst statements have been joined by a couple of reports from Digitimes, suggesting big drops in notebook orders from Taiwan and tough times for notebook giant Acer.

 

Company Listing Share price 8/8/10 Share price 12/8/10 4-day change Market cap (bn)
AMD AMD 7.45 6.49 -12.9% 4.38
Apple AAPL 260.08 250.19 -3.8% 228.56
ARM ARMH 15.27 14.48 -5.2% 6.35
Avnet AVT 26.24 25.16 -4.1% 3.82
Cisco CSCO 24.08 23.73 -1.5% 135.53
Dell DELL 13.12 12.10 -7.8% 23.70
Google GOOG 500.22 491.74 -1.7% 156.61
HP HPQ 41.85 40.77 -2.6% 95.18
IBM IBM 130.14 129.83 -0.2% 166.49
Ingram Micro IM 16.67 16.19 -2.9% 2.68
Intel INTC 20.65 19.42 -6.0% 108.08
Microsoft MSFT 25.55 24.86 -2.7% 215.49
Nokia NOK 9.52 9.07 -4.7% 33.97
Nvidia NVDA 9.55 8.88 -7.0% 5.08
Oracle ORCL 24.38 23.66 -3.0% 118.92
Qualcomm QCOM 38.65 39.36 1.8% 63.18
Tech Data TECD 40.31 37.97 -5.8% 1.93
Dow .DJI 10653.56 10378.83 -2.6% N/A
FTSE 100 .FTSE 5332.39 5246.17 -1.6% N/A
NASDAQ .IXIC 2288.47 2208.63 -3.5% N/A