Sunday, July 20, 2008

Corporate vs Consumer Tech

In the present economic climate, tech companies that service the corporate world are fairing better than those that are based in consumer sales.

Reuters: Tech earnings diverge as economy weakens
International Business Machines Corp...impressed investors by easily beating quarterly profit expectations and raising 2008 forecasts...

In contrast, Microsoft Corp missed estimates amid concern about its online business and the economy, while Google Inc also disappointed. The Web leader told investors it was operating under "uncertain economic conditions" after a weaker-than-expected 35 percent quarterly profit increase.

Companies the size of IBM could fare better in a weakening economy than smaller rivals, analysts said, as customers pare back the number of vendors to focus on those deemed most resilient to an economic slowdown.

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