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News > Technology
November PC sales slow
December 8, 2000: 7:19 a.m. ET

Report hints at more anxiety for makers already battered by lower forecasts
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NEW YORK (CNNfn) - New reports indicating slower personal computer sales in November are sparking fear that more companies in the $120 billion industry may be hurt by softer revenue and weaker bottom line results, according to a published report Friday.

PC unit sales declined 12 percent to 15 percent from year-earlier levels, a greater decline than in the previous month and at a faster pace than earlier in November, according to a report from PC Data cited by the Wall Street Journal in its online edition Friday.

In addition to PC Data's report, International Data Corp. lowered its forecast for fourth-quarter worldwide PC sales, and warned that economic worries would soften home PC sales "for two to three quarters" more, according to the Journal. The research firm now estimates a 19.8 percent increase in sales, down from the 20.3 percent rate previously forecast.

PC Data and other researchers now expect manufacturers will have to slash process to clear inventories, cutting into industry profits.

The data come at the end of a week in which several tech bellweathers issued warnings about bottom line results and sales, citing lower PC sales.

Intel (INTC: Research, Estimates) warned after the bell Thursday that declining computer sales would erode the chipmaker's fourth-quarter revenue.

The slowdown also prompted Goldman Sachs to cut its rating on PC operating system software maker Microsoft (MSFT: Research, Estimates) earlier Thursday.

On Tuesday, Apple Computer  (AAPL: Research, Estimates) blamed lower box sales when it said it expected a huge revenue shortfall in the fiscal first quarter ending Dec. 30.

And, just after Thanksgiving, Gateway (GTW: Research, Estimates) said slower-than expected sales would cause it to miss fourth-quarter forecasts. graphic





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