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Demand for personal computers still erratic, outlook unstable [Khaleej Times (United Arab Emirates)](Khaleej Times (United Arab Emirates) Via Acquire Media NewsEdge) The latest sign that the PC market's stability could be short-lived came from technology distributor Synnex Corp. Improved demand for personal computers after years of declines may not last as emerging markets remain weak and recent corporate upgrades in the United States and Europe may prove fleeting. The latest sign that the PC market's stability could be short-lived came from technology distributor Synnex Corp. Its shares have slumped 16 per cent since chief executive officer Kevin Murai warned earlier in July that increased demand was already waning from companies buying new computers to upgrade their operating systems after Microsoft Corp stopped supporting Windows XP in April. Investors have pushed shares in PC mainstays Microsoft and Intel Corp and parts suppliers such as Seagate and Western Digital Corp to decade- or record-highs, partly on bets that the global slump in PC demand that began with Apple's launch of the iPad in 2010 may have hit bottom. But detractors point out the story is far from certain. Demand is still falling in emerging markets such as China, crucial to any sustained comeback. While up to a quarter of the world's PCs still employ the 13-year-old Windows XP, it is unclear how many will choose tablets or Apple and Google Inc "Chrome" computers over PCs, rather than upgrade to newer Windows versions. "If this is only a couple quarters of flat growth and all of a sudden we go down to five and seven per cent year-over-year declines again, then people are going to get nervous and say we don't know where the bottom is," said Chuck Jones, founder of research firm Sand Hill Insights. Intel reports its second-quarter results on Tuesday, while Microsoft posts earnings on July 22 and both are likely to shed more light on the state of the global PC market. Seagate, which reports on July 17 and Western Digital, which gives its results on July 30, could fill in the picture further. Optimism on Wall Street has grown since Intel unexpectedly raised its quarterly and annual revenue outlooks in June, sending its shares to levels not seen in a decade. Microsoft's stock is at highs last seen in 2000. Shipments of PCs were flat in the June quarter, according to research firm Gartner, a better-than-expected result. "Market feedback on the PC space is much better than 18 months ago," memory chipmaker Micron Technology President Mark Adams told Reuters in June. — Reuters (c) 2014 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |