PC Market Still Slowing (DELL, HPQ, LNVGY)

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 |  Includes: DELL, HPQ, LNVGY
by: William Trent, CFA
Thus spake the Lenovo Group (OTCPK:LNVGY).

While the news is likely no surprise to Dell’s (NASDAQ:DELL) investors, it may be one for those who own Hewlett-Packard (NYSE:HPQ). Furthermore, the delays to Microsoft’s Windows Vista continue to cause many to wonder whether businesses will alter their PC replacement plans in order to do a more comprehensive upgrade at a later time.

Passive component maker Walsin Technology Corporation said that lower-than-expected demand from the PC sector has affected the company’s performance in the second quarter and it regarded July to August as the key indicator for this year’s business outlook, according to DigiTimes.

Meanwhile, industry analysts at IDC expect notebook computer shipments to grow in Asia, though not enough to offset a decline in the US and Europe.

LNVGY-DELL-HPQ 1-yr comparison chart:

LNVGY-DELL-HPQ 1-yr comparison chart