Very soon IDC and dataquest are about to announce that Dell has over taken CPQ to become the #1 PC maker. Aslo the company is planing to launch new products during this qtr including the dell's internet device called webster. Sales this qtr can easil top 6.5 Billion. This stock will be trading around $65 by the end of this qtr.
NEW YORK (Reuters) - Ingram Micro Inc. (NYSE:IM - news), the world's top computer wholesaler, Wednesday said its quarterly earnings would fall far short of Wall Street expectations and that it had begun a search for a new chief executive.
The news sent Ingram shares down 28 percent in trading on the New York Stock Exchange and also dragged down the stock of Ingram rival Tech Data Corp. (Nasdaq:TECD - news), the world's No. 2 computer wholesaler. Investors apparently saw Ingram's troubles as a sign of further industry turmoil.
For Ingram, logistics and warehouse backbone of the computer industry, the stock drop represented an all-time low.
Ingram blamed difficult market conditions, primarily in the United States.
The earnings shortfall comes amid continuing turmoil in the computer industry, which has been hurt by falling prices.
Stead said competitive industry pricing, coupled with cuts in rebates and incentives paid by PC makers and other manufacturers to Ingram's sales distribution network, had put extra pressure on profit margins, especially in the United States.
``In addition...efforts to raise prices in selected market segments prompted customers to evaluate other sources for their product purchases,'' harming sales, Ingram said.