U.S. stocks review: PC recovery has nothing to do with Dell

For Dell, I'm afraid investors need more patience, MarketWatch wrote today. Global PC sales have changed markedly in the third quarter of this year.　　As a then, when Dell released its financial time last week, it was natural to think that they could have reached even more than Wall Street's expectations. It backfired, however, when Dell released the money in Friday, only to find that Dell had disappointed them, and that the company was clearly losing market share. As a result, the price of the unit fell nearly 10% on the same day.　　As for Dell, they say their corporate clients are still unsatisfactory, leaving them in a disadvantageous position in the consumer-led recovery. "We feel that when the market share of Apple (AAPL) and Hewlett-Packard (HPQ) is growing, Dell is losing money," said Mark Moskowitz, an analyst at JPMorgan Chase, in a Friday study. This is largely because they are more closely related to the business market. "The Texas company has about 80% of its revenue from corporate customers," he said. "Over the course of 2009 years, consumers, not companies, have shown the elasticity of expectation in it procurement, although this elasticity is largely reflected in the low price of the product sector." "When Gartner Inc. This trend has been very clear in the release of personal computer market share data in mid-October. Their data show that Taiwan's Acer is one of the fastest-growing sales among the world's top five computer makers. In the third quarter of a year ago, Dell was the second player in the world.　　Now Acer's shipments jumped 23.6%, and the main driver was the low price of PCs, including Netbooks, which Dell often shied away from. Richard Gardner, Citigroup analyst, said Dell's overall revenue fell 15% per cent in the third quarter, partly reflecting their "further retreat from the market for Low-margin, low-cost consumer notebooks, such as netbooks".　　At the moment, the competition is in the midst of a price war, and the price of both memory and liquid crystal displays is rising, and Dell is clearly unwilling to get too involved in such brutal competition. As a result of this focus on low-priced products, the overall PC market is still feeling deep pain. HP's Monday earnings show that the company's overall PC shipments have grown by 8%, while the company's personal-system sector has fallen 12% per cent, a boon for low-end products.　　Meanwhile, Dell's overall unit shipments fell 5% from a year earlier. Windows 7 unreliable at last week's results announcement, Michael Dell stressed that they had seen the hope that many aging PCs were waiting to be upgraded and that people would adopt a microSoft (MSFT) new device armed with the latest Windows 7 operating system. In practice, however, pinning everything on top of the Windows 7 upgrade cycle is a very risky practice. "We are still skeptical of the so-called massive personal-computer updates for next year's companies," he said in a blunt statement in the study. "Now, the economy has indeed looked up, and for the first time in the last quarter gross domestic product has risen, reversing the decline of the previous four consecutive quarters."　　The problem is that this little rebound is actually supported by the consumer, which is also a reward for government stimulus measures such as cash for clunkers. As for enterprises, the upgrading of their computer systems for large-scale expenditure is still a suspicious one.　　Last week's warning about a double bottom was a nervous strain on the management of many companies, and they certainly could not be willing to undertake large-scale technology purchases at such a time. In fact, many companies now have hundreds of desktops and notebooks sleeping in storage, and the owners of those devices are now being abolished.　　As long as these devices are still passable, they will first of all consider these devices when they encounter an update requirement, and only then will they think of spending money to buy new equipment and software.　　In fact, even Gartner, they don't think that Windows 7 will provide much of a boost, and they believe that this round of things cannot be compared to the past Christmas software upgrade cycle, especially in the corporate market. "The new operating system is not really a driver of the PC market," he said. "Just because of the expected economic recovery and the delay in the hardware update cycle, the timing of Windows 7 does benefit the industry," Mikako Kitagawa, Gartner analyst Beichuan.　　She added that Windows 7 would have to really cover the corporate market, at least until later next year.　　With this in mind, if Dell is always cautious and in the midst of this low-margin, consumer-led recovery, investors will have to continue to be patient enough to wait a long time. (Author of this article: Therese Poletti)