HP’s (HPQ) earnings were good. Net income rose 26%. But, that was only part of the story. With laptop revenue rising 40%, it would appear that Dell is losing more share to HP. And, that could get worse.
Writing about the trend, The Inquirer spoke to Shaw Wu, an analyst with American Technology Research. His take: "HP was beating up Dell and there was room for them to gain even more share. He added that from Dell’s perspective that could be very scary "
To put a finer point on it, Michael Dell (DELL) is being faced with a legion of problems as he returns as his company’s CEO. And, perhaps the one he can least afford is a continuing loss of market share. The philosophy at Dell now is profit ahead of volume. But, like GM (GM) is finding, if volume drops far enough, the profit part is tough.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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