Lenovo Shares Hit As PC World Implodes

Consumer Electronics

Published: January 9, 2008 6:14 am

So much for the turnaround at Dell (DELL) and the two-year revival at Hewlett-Packard (HPQ). Even overseas PC companies like Lenovo are being hurt by the perception that US demand for computers is falling.

Lenovo shares "dived more than 14 percent on Wednesday after a broker cut the Chinese firm to sell on growing fears of a U.S. recession," according to Reuters. Since Lenovo sells most of its computers in Asia, the drop in the company’s stock would have to assume a near disaster in the US.

Dell is already back to a 52-week low and HP shares have sold well off their multi-year highs. AMD (AMD) and Intel (INTC) have also been beaten like mules. If the trend continues, Apple (AAPL) could be hurt because of the importance of Mac sales to its fortunes. Microsoft (MSFT) could be vulnerable because of the amount of its revenue that is expected to come from Vista, the new PC OS.

Processors built two years ago are still very fast given the applications needed to be run by most consumers and businesses, That means that the upgrade cycle could go out another several quarters. Vista is not popular enough to pull up computer sales on its own. Buying a PC with a chip that will run a super-computer may have lost its appeal.

Older software and chips may just be so good that pinched consumers and enterprises can pass on the new stuff, at least for now.

Douglas A. McIntyre

In 20 Years, I Haven’t Seen A Cash Back Card This Good

After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.

A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.

Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.