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Processors Continue Downward Trend

February 22, 2012 by Michael  
Filed under Computing

Analyst over at Carnegie have said that world chip sales are likely to be only $22.7billion in January, compared to $23.8 billion in December.

Seasonally adjusted, that would be down 1-2 per cent on a monthly basis and mean that actual chip sales will likely fall 15-16 per cent on a yearly basis. The reason for the fall, the analysts say, is due to disk drive shortages in Thailand which have forced costs to rise. The PC market is likely to be more back-loaded this year, the report notes.

Handset chip sales were likely also soft in January. Chips for cars were softer after a strong December. Other quirks, such as an early Chinese New Year also contributed the low figures in January. Although several chip makers indicated the inventory problems in fourth quarter had ended, Carnegie thinks that the indicator shows that the trend will continue into this year.

PC’s are the biggest chip users, followed by cell phones. Cars, appliances, base stations, and instruments are other significant users, the analyst said.

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Courtesy-Fud

HP Makes Some Executive Changes

November 3, 2011 by Michael  
Filed under Computing

HP has appointed former Boeing Company executive John Hinshaw as CIO.

In the newly created role of EVP of Global Technology and Business Processes, Hinshaw will oversee IT and shared and administrative services, including indirect and services procurement. Hinshaw also will be in charge of optimising business processes across the company.

Hinshaw was previously VP and general manager of Boeing Information Solutions at The Boeing Company, where he was responsible for running a new business.

Prior to Boeing, Hinshaw was SVP and CIO at Verizon Wireless. Earlier in his career he also served as a consultant with Accenture.

Hinshaw will join HP as a member of its executive council on 15 November, reporting to HP president and CEO Meg Whitman.

Meanwhile, HP also announced that Craig Flower has been promoted to SVP and CIO. Flower will be responsible for data management, application architecture, global business intelligence, sales, and product development and engineering applications. Flower has held a wide range of IT management positions within HP since 1984.

The new appointments come at a time when HP is losing executives right and left. Earlier this week, HP lost its CTO of the HP personal systems group, Phil McKinney, when he announced this retirement.

Less than two weeks ago HP’s chief strategy and technology officer Shane Robison announced his retirement.

In September, HP abruptly removed controversial CEO Leo Apotheker from his corner office and replaced him with Meg Whitman.

 

 

Courtesy-TheInq

 

HP Changes Its Mind,Decides To Keep PC Unit

October 28, 2011 by mphillips  
Filed under Computing

Hewlett-Packard Co. has decided to retain its PC division after all. So says its newly appointed CEO Meg Whitman.

In its announcement, HP said it conducted a “data-driven evaluation” of the impact of cutting off its Personal Systems Group (PSG) and concluded that it was just too important to its supply chain, procurement and overall brand.

“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” Meg Whitman, HP president and CEO, said in a statement. “HP is committed to PSG, and together we are stronger.”

HP is the world’s largest maker of personal computers.

As Whitman considered a spin-off, rival CEO Michael Dell worked to capitalize on HP’s self-imposed uncertainty while also offering advice. Dell believed a spin-off or sale was a bad idea, and argued that despite sluggish PCs sales, “it’s a growth market.”

Dell has predicted that the number of PCs in the world would grow from 1.5 billion now to about 2 billion in a few years.

Other critics of the idea argued that the separating the PC division from HP’s other product lines would hurt the company’s ability to sell into enterprises and would cost it some leverage in buying parts, such as disk drives.

This is Whitman’s first big strategic decision for HP. In keeping the PC division, she is holding on to a division that generated $40.7 billion in revenues in 2010.

 

Microsoft’s Windows Revenues Plummeted By 30%

January 28, 2011 by mphillips  
Filed under Computing

Revenues from Windows sales declined 30% last quarter compared to the same period the year before, Microsoft said on Thursday.

But in an earnings call with Wall Street analysts on Thursday afternoon, Microsoft said that revenues from the Windows group actually climbed by 3%. It called that “in line” with the quarter’s global PC sales growth.

The difference in the two numbers was due to the inflated revenue in the comparative quarter – 2009′s fourth – which had been boosted by a Windows 7 pre-launch “spike,” and by the $1.71 billion in revenue that had been deferred to account for the free upgrades Microsoft handed out to customers who bought Vista in the months just before Windows 7 launched.

When the spike and deferred income revenues in 2009′s fourth quarter are removed, Microsoft said, Windows’ revenues of $5.05 billion inched up that 3% from last year’s $4.92 billion.

Four quarter revenues were 5% higher than the $4.79 billion in 2010′s third quarter. Rob Helm, an analyst with Directions on Microsoft, tried to explain Microsoft’s accounting.

“When the launch ‘spike’ and the deferral are both ignored, Windows revenues climbed 3%,” said Helm. “When just the spike is ignored, Microsoft took a 5% hit.” Only when both the spike and the deferral are included does the balance sheet show a 30% decline, he stated.

Helm said that the Windows 7 launch spike boosted 2009′s fourth quarter by $560 million. “My guess is that it’s a matter of computer manufacturers buying a bunch of extra licenses then, anticipating the launch of Windows 7, and increased PC sales,” he said.

But the number to focus on is “3%,” the year-over-year increase in Windows revenues when all the deferred and spike-driven income is tossed aside. “It just shows how tightly Windows 7 sales are yoked to PC sales,” Helm said. “When the PC market slows, so does Windows.”

Earlier this month, both Gartner and IDC estimated global PC sales had climbed about 3% — Gartner said 3.1%, IDC said 2.7% — in the last three months of 2010 compared with the same timeframe last year.

Microsoft noted several times that consumer PC sales slowed dramatically last quarter, adding that netbook sales had been particularly soft. Business PC purchases, however, were up. And Windows’ sales reflected those trends.

Overall, Microsoft listed its revenues at $19.85 billion, a record for the October-December quarter. Sales from the company’s Entertainment and Devices division, helped immensely by the success of Kinect and its halo effect on the Xbox 360 game console, grew by a whopping 55%, the best showing of any Microsoft group.