European Woes Take Their Toll on PC Sales

It’s Europe again, and PC vendors are feeling the heat. After Dell (NASDAQ:DELL) reported disappointing numbers for their first quarter, PC vendors are complaining that retail orders out of Europe are on the downswing, and as a result shipments in the second quarter may also show weak growth, according to a report in Digitimes.

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Given the prevailing uncertainties, vendors are wondering whether the peak season in the second quarter will really see a demand pop.

Though notebook ODMs are hoped to reach a shipment ratio of 4:6 between the first and second quarters, there is now a question mark given the worsening political and financial crisis in Europe.

That’s bad news for Hewlett-Packard (NYSE:HPQ), which has been struggling in the hardware market against competitors like Apple (NASDAQ:AAPL), and has kept its projections for the coming months fairly low. Yesterday, though reporting improved earnings, H-P announced its decision to cut 27,000 jobs as it restructures to reduce costs and hopefully reverse its sales slump

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