Wednesday, July 20, 2011

Tech Earnings

Well, Lenovo is entering the tablet space, and at least one product will have an MSFT operating system.
 Granted this space is getting crowded, fast, but it looks like MSFT will at least play.  I am still looking to see how the Skype acquisition fits into the overall picture, but it does mean that MSFT will handle many of the calls going over competitive handsets .... including the iPhone.

I do see where expectations are for an earnings miss from Intel, based on margin compression as they work to bring new chips into market.  It seems that the bigger issue will be the outlook for the PC market, which Intel has estimated to grow double digits.  This seems unlikely given the strength of tablet sales and slowness in hiring, so actually, Q2 earnings will probably not be the determining factor in the price movement, but rather INTC ability to sustain any sort of top line growth.  This was the same discussion in Q1, however, which turned out to be pretty good and let to a dividend increase.

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