Notes On The PC Market

Although Apple (AAPL) serves a somewhat different client base, it does compete with Dell (DELL), Hewlett-Packard (HPQ) amongst others. The desktop market has declined significantly, and this will impact the computer companies and their suppliers.

Intel (INTC) has announced their results and they were not good. Western Digital (WDC) and NVIDIA (NVDA) have guided numbers downward; Sanmina-SCI (SANM) numbers were disappointing; Sony (SNE) is pointing to a loss.

Next week, Canon (CAJ) will announce results (29 January). CAJ is a major supplier of printers to HPQ, and printer sales tend to follow computer sales.

We do not expect the situation to reverse itself in the next six months. A significant percentage of computer purchases are made by corporations, and capital spending lags corporate profits.

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