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PC margins expected to sink further as vendors engage in race to the bottom

Published Apr 15th, 2013 5:55PM EDT
PC margins expected to sink further as vendors engage in race to the bottom

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You know the PC industry is in trouble when bearish analysts are criticizing themselves for not being pessimistic enough. StreetInsider points us to new research from Deutsche Bank analyst Chris Whitmore, who says that his earlier “relatively bearish estimate” for PC sales in 2013 “is already looking too high.” With Dell looking to exit the traditional PC business and go private, Whitmore thinks the company will enact aggressive price cuts that will further erode margins on personal computers and will force vendors to “compete for scale in a structurally declining market.” Whitmore thinks this will take a particularly hard toll on HP, which saw its PC shipments decline by more than 23% year-over-year in Q1 2013.

Brad Reed
Brad Reed Staff Writer

Brad Reed has written about technology for over eight years at BGR.com and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.