The latest corporate earnings results from Dell Inc. (NASDAQ/DELL) were quite shocking, as the firm dramatically cut its full-year forecast. Technology stocks have always been under heavy competition, but it appears that Dell is losing its touch at driving corporate earnings growth rates.
Dell is fighting against a whole new level of technology stocks. Competition is coming not just from other PC makers, but now tablet makers as well. We've all seen the massive surge in "iPads" purchased from Apple Inc. (NASDAQ/AAPL) and this landscape of technology stocks encroaching into each other's territory will continue.
While Dell is having a hard time maintaining corporate earnings, technology stocks like Apple are increasing them. The reason is that product innovation is driving consumer tastes and, ultimately, corporate earnings.
With a forecast of decreasing revenue and a much-lowered corporate earnings level, the company needs to adjust its business structure. The company did cite that a possible reason for the slowdown was a lull in buying, as people await the new Microsoft Corporation (NASDAQ/MSFT) "Windows 8" operating system.