|Bid||104.65 x 800|
|Ask||104.59 x 1000|
|Day's Range||100.84 - 108.25|
|52 Week Range||76.91 - 171.78|
|Beta (5Y Monthly)||1.39|
|PE Ratio (TTM)||40.93|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jul 18, 1999|
|1y Target Est||N/A|
Gartner Inc. said Wednesday that it has cancelled or postponed all conferences scheduled for April through August 2020, citing the COVID-19 pandemic. The research and advisory company said it estimates it will take a $158 million hit to revenue in the second quarter and $22 million hit in the third quarter as a result of the cancellations and postponements. The company said it was implementing several cost-cutting measures to reduce costs by at least $200 million, including reductions to travel, new hiring and capital expenditures. Gartner said it will provide further updates on its financial outlook when it reports first-quarter results in early May. The stock, which was still inactive in premarket trading, has tumbled 40.3% over the past three months, while the S&P 500 has lost 24.1%.
Will the new coronavirus cause a recession in US in the next 6 months? On February 27th, we put the probability at 75% and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to […]
Unfortunately for some shareholders, the Gartner (NYSE:IT) share price has dived 30% in the last thirty days. Even...
North Texas is enduring some technology-conference pushback of its own. The event, which was to be held at the Kay Bailey Hutchison Convention Center Dallas, focuses on education, using the company’s technology to get students excited about learning math, science, coding and more. Tech-related conferences are getting scrapped around the country as concerns about the spread of the coronavirus discourage travel and large gatherings.
(Bloomberg) -- When Alphabet Inc.’s Google published revenue from its cloud business for the first time last month, a feeling of bitter vindication swept through International Business Machines Corp.Google, which is ranked the third-biggest cloud provider in the world by industry analysts, reported $9 billion in cloud revenue for 2019. IBM lists $21 billion in cloud sales, yet usually it’s relegated to fifth place. Research firm Gartner Inc. even excludes it from their top-six rankings. After Google’s report, employees at IBM thought they’d finally get the credit they deserved.But the industry didn’t notice. Google still holds the bronze medal behind Amazon Web Services and Microsoft Corp.’s Azure. Analysts say IBM will remain near the tail-end of their rankings because the company defines the cloud more broadly than industry leaders.“What IBM calls cloud is different to what Amazon and Google call cloud,” said Ed Anderson, an analyst at Gartner. All companies have their own unique definition of cloud, and analysts like Anderson try to weed out the numbers that go beyond traditional descriptions.“You can see this posturing with IBM,” Anderson said. “They are really nervous about reporting a number that is too small and nervous about reporting a number that is too big that no one will believe.”Analysts prioritize what’s known as “pure public cloud,” the infrastructure that allows companies to rent servers, control their computing power on demand and only pay for what they use. Amazon.com Inc.’s AWS pioneered this new way of computing in 2006, and along with Microsoft, the two hold more than 50% of the global market in public cloud. IBM only has a small public cloud but it sweeps other businesses into its calculation of cloud revenue, including software, hosting services and consulting to help companies migrate data to the cloud -- a market IBM dominates.While these services are crucial, they are not as “sexy” as the core public cloud offerings that have defined the market and deserve to be the main industry measurement, according to analysts from prominent firms such as International Data Corp., Synergy and Gartner.For a company like IBM, which has undergone multiple transformations in its 108-year history, it’s important to communicate “that they are not just about yesterday’s technology,” said Frank Gens, chief analyst at IDC. “That’s why they are all feisty about wanting to establish their cloud credentials.”Armonk, New York-based IBM has struggled with declining revenue over much of the past decade as it was slow to adapt to the shift in computing to the cloud and away from the big servers it had traditionally managed on-site for companies. Now it’s staked a turnaround on newer technologies, including artificial intelligence and cloud computing. In 2018, IBM paid $34 billion to acquire open-source software provider Red Hat to help bolster its credentials as a top cloud contender. The company recently said Arvind Krishna, the head of cloud, would be taking over as chief executive officer when Ginni Rometty steps down next month.Despite all this, IBM is still waiting for recognition. “We’re proud of our progress and we’ve invested for this specific moment in the evolution to cloud,” spokesman Saswato Das said. “We like our hand, and we’ve already done better than most people actually give us credit for.”When IBM created its cloud division about seven years ago, it decided to use a broad definition when recording sales. The company includes all of its cloud-oriented hardware, software, professional services and any remote infrastructure service it runs for clients into the total number. IBM did this to boost its performance, knowing it was defining cloud in a different way to that of its rivals, according to people familiar with the company who didn’t want to be named discussing private information.Only about half of IBM’s reported $21 billion in cloud revenue actually comes from core public cloud offerings. AWS’s $35 billion in cloud revenue almost all comes from public cloud. Google’s cloud numbers also include corporate software sales like Gmail and Google Docs.In the early days of a new industry, experts, market leaders and analysts typically get to set the boundaries on how to best measure the sector. But some experts say that view should update as the market develops to ensure the industry accurately reflects where clients are spending their money.Charles King, principal analyst at Pund-IT, said initially the cloud was so closely associated with AWS that many analyst firms believed “if cloud didn’t closely model what AWS was doing it wasn’t worthy of being called cloud.” However, the market has become increasingly diverse and simply focusing on core public cloud ignores the billions of dollars flowing into services associated with cloud migration and adoption.(Corrects to remove reference to “cloud washing” in fourth paragraph.)To contact the reporter on this story: Olivia Carville in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Molly Schuetz at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Advanced Micro Devices Inc. Chief Executive Officer Lisa Su predicted the company will achieve revenue growth of 20% over the next four years and become more profitable as it reaches that goal.Gross margin, or the percentage of sales remaining after deducting the cost of production, will rise to more than 50%, she said. Su spoke at an investor event Thursday at the chipmaker’s Santa Clara, California, headquarters.AMD maintained its near-term revenue forecast of $1.8 billion, plus or minus $50 million, for the first three months of its fiscal year. While results may be at the lower end of that range and demand from consumers in China has weakened, orders elsewhere are in line with expectations, helped by demand for data center chips, Su said. The company also stuck by its prediction that sales will increase 28% to 30% in 2020.Su is talking to investors who want revenue growth and earnings to justify the faith they’ve shown by bidding up AMD’s stock since she took the top job in 2015. During her time in charge, AMD has taken on the world’s biggest chipmaker, Intel Corp., in its main markets armed with only a fraction of the resources. Now, like other chipmakers, it’s confronting disruptions to supply and demand caused by the coronavirus outbreak.“We’re a much stronger company than we were five years ago,” Su said. “The opportunities are larger.”Read more from the Bloomberg 50: Lisa Su, AMD’s David to Intel’s GoliathAMD’s stock rose 6% in extended trading. The shares, which traded at $2.87 at the end of 2015, closed at $48.11 Thursday in New York and have doubled in the past 12 months. AMD was the best performer on the S&P 500 Index in 2019.Su said the computer industry’s supply chain is rapidly recovering to typical levels of activity. AMD’s suppliers in China, Taiwan and Malaysia are almost back to full output, the CEO added. Other technology companies have scrapped guidance or lowered forecasts for the current period.AMD has targeted double-digit market share in servers by the middle of this year, trying to reclaim a meaningful position in that lucrative market after dropping to less than 1%. Server computers are the backbone of corporate networks and the giant data centers that run the internet. Chips that power them can cost more than $10,000 each.While manufacturing difficulties at Intel have made it vulnerable to a reinvigorated range of offerings from AMD, any shifts in the market have yet to cause the bigger company discomfort. Intel’s server chip unit grew 19% in the fourth quarter and revenue from cloud-service providers, which offer computing power and storage via the web, surged 48%. Intel’s data center business gets more revenue in a quarter than AMD generates in year.Both companies have benefited from strong demand for personal computers. Global PC shipments rose 2.3% in the fourth quarter from a year earlier as companies upgraded to a new version of Microsoft Corp.’s Windows operating system, according to research firm Gartner Inc. AMD has an even greater ability to cash in on the trend as it’s also the second-largest maker of chips used in computer graphics cards.(Updates CEO comments on short-term forecasts in third paragraph)To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Alistair Barr at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- HP Inc. announced it will return $16 billion to shareholders, primarily through buybacks, and boost cost cuts, trying to rally investors against Xerox Holdings Corp. for control of the world’s second-largest personal computer maker.HP will increase share repurchases to $15 billion from a $5 billion program announced in October. This will result in adjusted profit of $3.25 to $3.65 per share in fiscal 2022, which is about $1 more per share than analysts’ projections. HP executives also said they have engaged Xerox to discuss a potential combination on their terms, rather than succumbing to the printer maker’s hostile takeover effort.The hardware giant raised its profit forecast for fiscal 2020 to as much as $2.43 a share, excluding some expenses, bolstered by the surge of share repurchases scheduled after the company’s annual meeting. For the current period, profit will be 49 cents a share to 53 cents a share, the Palo Alto, California-based company said Monday in a statement. The forecast fell short of Wall Street’s estimate of 54 cents, according to data compiled by Bloomberg.HP executives said supply-chain disruptions related to the coronavirus outbreak will cost the company about 8 cents a share in adjusted profit in the current quarter. HP doesn’t expect the virus known as COVID-19 to affect performance in the second half of 2020.The company also said it would raise its cost-cutting program to $1.2 billion by 2022. HP, which had 56,000 workers as of October, is in the midst of a restructuring that could result in as many as 9,000 employee dismissals.HP’s shares gained about 4% in extended trading after closing at $22.10 in New York. The stock has declined about 7% in the past 12 months.HP has repeatedly rejected Xerox’s effort to secure a $35 billion acquisition, saying it “significantly undervalues” the company. A deal would unify two icons of the technology industry that pioneered innovations consumers and office workers still use today, but have faded in an industry increasingly driven by software. Xerox has said it will launch a tender offer “on or around March 2” for HP shares valued at $24 in cash and stock. For each HP share, a holder would get $18.40 in cash and 0.149 Xerox shares. Norwalk, Connecticut-based Xerox has also started a proxy fight, nominating 11 candidates for HP’s board to help close the deal.“We had a very strong first quarter, are putting in place a very aggressive plan and we are confident we can deliver on it, as we have in the past,” HP Chief Executive Officer Enrique Lores said in an interview. “We are open to explore a combination. Any combination needs to address three issues: it needs to reflect the right value exchange, needs to have the right capital structure and needs to have the right assessment of synergy.”HP believes a deal with Xerox would only unlock $1 billion in cost savings, not the $2 billion Xerox executives have promised, because only 10% of their businesses overlap, Lores said. HP will use a combination of cash on hand and debt to fund the buybacks. Chief Financial Officer Steve Fieler said he expects to take out a “few billion” dollars of debt. The company is committed to retaining a debt ratio of 1.5 times to 2 times profit, from 1.1 times currently.Xerox’s largest investor, activist Carl Icahn, has pushed for a tie-up in any form, so long as Xerox CEO John Visentin leads the combined company.HP structured the buybacks as an incentive for investors to reject Xerox’s director candidates. If shareholders vote against the challengers, they’ll start to see a benefit from $8 billion in buybacks over the next year, according to HP. The company said it would issue a proxy statement in the next week to announce the date of its annual meeting, which is usually in April.Fiscal first-quarter profit was 65 cents a share, excluding some expenses. That surged past HP’s previous projection of as much as 56 cents for the quarter. Analysts estimated 54 cents.For a year, HP has sought to stabilize its profitable printing division, which started stumbling in February 2019 due to lower customer demand for ink and toner. Revenue declined less than 1% to $14.6 billion in the period ended Jan. 31. Sales in the printing division fell 7% to $4.7 billion, with ink supplies dropping 7% in the period ended Jan. 31. Consumer hardware revenue declined 13% and commercial devices decreased 1%.In response to the falling ink sales, HP plans to change its business model starting late this year to make some printers profitable upfront, rather than heavily discounting them and making up the difference with ink sales. The company’s cheap printers will now be incompatible with generic or counterfeit ink cartridges.HP is the leader in the printing industry, with 20.6% of the market by revenue, according to research firm Gartner Inc. Xerox is fourth, with 10% of the industry.Revenue from personal computers increased 2.4% to $9.9 billion in the quarter, despite disruptions from the coronavirus outbreak. There were sales increases across laptops, desktops and workstations. Corporate clients are upgrading their computers to adopt Microsoft Corp.’s Windows 10 operating system.(Updates with talks about a potential deal in the second paragraph.)\--With assistance from Scott Deveau.To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Here we discuss a few companies, including Palo Alto Networks (PANW), which have the resources to overcome the challenges and build a completely SASE-based security model.
(Bloomberg) -- In March, VMware Inc. Chief Executive Officer Pat Gelsinger took the stage at a premier cybersecurity conference to deliver a cutting message to attendees: The industry had failed its customers and many of the companies were akin to ambulance chasers.“We have 6,000 products, 5,000 companies, highly fragmented, (and) not operational,” Gelsinger recalled telling those at the RSA Conference in San Francisco. “We’re the fastest growing line item for IT and the number and scope of breaches has increased.”The reaction: “There were people who wanted to kill me,’’ he said. “There were people who considered me a prophet of the future.”Five months after Gelsinger’s speech, VMware entered the fray, buying cybersecurity company Carbon Black Inc. for $2.1 billion, and joining an estimated 5,600 companies that offer security hardware, software or services. VMware, majority owned by Dell Technologies Inc., and Box Inc. are among the software makers that have targeted the area as the next frontier for growth. Businesses are spending more to protect their information in an era when cyber-attacks have become more frequent and data is moving from corporate servers to huge public cloud-computing vendors.Companies spent $112.7 billion on information security and risk management in 2018, and are projected to increase that outlay almost 9% more per year through 2022, according to research firm Gartner Inc. Still, with the industry so diverse, and so many niche products available, it will be difficult for any new entrant to capture a big share of the business, said Erik Suppiger, an analyst at JMP Securities. “Security is a very specialized technology and it’s difficult to replicate the culture of security innovation at a company that’s not focused on security,” Suppiger said in an interview. “When you have other companies trying to expand beyond their core focus, I think a lot of times they are more successful if it’s adjacent to what they do. It’s when they move beyond a good complement that they get into trouble.”The top public cloud companies, Amazon.com Inc., Microsoft Inc. and Alphabet Inc.’s Google also have started to develop add-on security tools to protect clients’ data on their platforms, suggesting another new, powerful force in the industry.“We haven’t seen them dominating yet, but they are in a very good position,” Suppiger said of the three cloud titans.Despite the market chaos, Gelsinger sees an opportunity for VMware. It plans to integrate Carbon Black’s data-protection product with its existing software and sell them as a suite.“We’re going to redefine the category to say if you’re not a platform and you’re not doing management and security, you’re part of the problem, not part of the solution,” he said.VMware makes software that allows customers to combine multiple tasks on a single server, and is trying to shift to selling more programs that help companies run applications in the cloud and in their own data centers. For years, the 22-year-old company has sought new avenues to boost sales growth, including networking solutions and products that authenticate the identities of those accessing corporate devices and systems.Revenue growth of about 12% year over year for the last four quarters hasn’t matched business cloud applications companies such as Salesforce.com Inc. or Adobe Inc., which regularly post quarterly revenue gains of more than 20%.While no individual companies dominate the market the way former titans McAfee and Symantec once held sway, VMware’s Carbon Black competes with Crowdstrike Inc., a Wall Street favorite since it went public last June. Carbon Black makes software that helps companies detect malicious behavior on their systems. Gelsinger said he considered buying Crowdstrike and others, but dismissed the notion of spending one-third of his company’s $60 billion market capitalization on “one solution.”Instead, VMware is betting it can capture bigger deals by integrating Carbon Black’s tools and selling them through its existing, much-larger salesforce.Suppiger said VMware’s entrance into the market is unlikely to rattle rivals.“I don’t view them as a major threat to the vendor landscape in the endpoint space,” Suppiger said. “There’s a pretty strong case to be made that Crowdstrike is out-executing Carbon Black as part of VMware.”Other companies may emerge as targets for those looking to bolster their positions in the cybersecurity market. Dell is said to be exploring a sale of RSA Security, which it hopes could fetch at least $1 billion, Bloomberg News reported in November. CrowdStrike remains a coveted asset, as is Zscaler Inc., which provides web and mobile security, and analysts have pointed to Palo Alto Networks Inc., though its $24 billion market value makes it an expensive acquisition.Box CEO Aaron Levie, too, sees cybersecurity as a way to expand. His company’s sales growth dropped to less than 20% a quarter in the current fiscal year—far slower than many of its cloud peers.Last October, Box launched a security product, Shield, that’s meant to help companies reduce data leaks through additional controls. The introduction of the new product coincided with activist investor Starboard Value LP taking a stake in the Redwood City, California-based software maker, pushing the company to increase sales growth and make a profit.Box’s future will be determined, in part, on how well it can sell Shield. Levie said he came to believe that a security product would be a natural evolution for the company that sells file-sharing and collaboration tools.In “a world where companies are sharing and collaborating inside and outside of their organizations, you need an all-new security model to protect information that flows between companies,” he said.For all of VMware CEO Gelsinger’s complaints about how fractured the cybersecurity market is, Suppiger still sees the best solutions coming from smaller companies that concentrate on specific problems. But the market remains wide open.“Cloud security is still the wild, wild west where the competitive dynamics have yet to really play out,” Suppiger said.To contact the author of this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Andrew Pollack at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The private investment arm of Koch Industries Inc., run by billionaire Charles Koch, has acquired the remaining equity in cloud-software maker Infor Inc., the companies said.The deal values Infor at $11 billion, or nearly $13 billion including preferred shares, according to people familiar with the matter who asked not to be identified discussing private information. Koch Industries, the Wichita, Kansas-based conglomerate, already owned about 70% of Infor, the company said. Its subsidiary Koch Equity Development LLC purchased the remaining Infor equity it didn’t already own from Golden Gate Capital. Infor, which Wall Street has viewed as a candidate for an upcoming initial public offering, will become a Koch Industries subsidiary. The move to buy Infor underscores Koch Industries’ continued push into technology, a relatively new priority for a sprawling conglomerate best known for refineries, paper goods, and other industrial products—along with the libertarian and conservative views of its CEO and his brother David, who died last year.In 2013, Koch Industries, which brings in $110 billion in annual revenue, bought electronics component maker Molex for $7.2 billion. And three years ago it launched a venture capital arm, Koch Disruptive Technologies, run by Charles’s son, Chase. That venture division has made investments in companies such as enterprise software startup D2iQ and 3D-printing company Desktop Metal.“Investment in Infor is a great platform to continue in that space,” said Jim Hannan, the executive who runs the enterprises division of Koch Industries. A range of Koch businesses already use Infor’s tools, Hannan said, adding, “It doesn’t matter whether you’re making paper towels or fertilizer or anything else.” Infor, a competitor to companies like Oracle Corp. and SAP SE with annual revenue of about $3.2 billion, makes software that is specialized by industry, including manufacturing, government, health care and retail. Its fastest-growing product is its software-as-a-service business, which allows customers to use software held remotely instead of maintaining it in their own data centers.Koch Equity Development first took a $2 billion stake in Infor in 2017, and topped it up with another $1.5 billion a year ago. Infor had been considering an IPO, and according its chief executive officer, Kevin Samuelson, hasn’t ruled out that possibility for the future. But Samuelson said the acquisition route was more immediately appealing because of Koch Industries’ robust balance sheet, with its clout that could potentially enable Infor to make further acquisitions of its own. Of the Koch Industries bid, Samuelson said, “Just the access to capital, the IT perspective, working with someone who started as a customer—this was the right outcome.”Infor’s market share in enterprise software is about 6%, according to the research firm IDC, making it third after SAP and Oracle. Gartner Inc., another researcher, placed both its 2018 market share and its growth rate at 5%. Infor said its software-as-a-service unit would be on track for about $800 million in annual revenue, if its last month’s revenue held steady for the following year. That unit is also growing at more than 20% annually, Samuelson said.Infor, founded in 2002, has grown both organically and through acquisitions. It bought GT Nexus for $675 million in 2015. (Adds context on the valuation in the second paragraph.)\--With assistance from Ed Hammond.To contact the author of this story: Sarah McBride in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.com, Michael HythaLiana BakerTom GilesFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Gartner (IT) delivered earnings and revenue surprises of 43.90% and 0.49%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg) -- Advanced Micro Devices Inc. gave a lackluster forecast for the current period, suggesting gains against larger chip rival Intel Corp. may take longer than investors had hoped.Revenue in the first three months of the year will be about $1.8 billion, plus or minus $50 million, Santa Clara, California-based AMD said Tuesday in a statement. That would fall short of the average analyst estimate of $1.87 billion, according to data compiled by Bloomberg.AMD also said sales will increase 28% to 30% in 2020. Analysts, on average, projected annual revenue growth of 28%.Shares slipped about 3% in extended trading after the earnings report. The stock has surged to more than $50 this year, up from less than $3 at the end of 2015, as investors bet that the company’s new products, and manufacturing stumbles by Intel, would open the door to sustained market share gains.Though the quarterly outlook disappointed some investors, AMD’s revenue growth forecast reflects strong demand for server chips from cloud data center operators and personal computer makers, mirroring Intel’s report from last week.“We delivered significant margin expansion and increased profitability as we gained market share with our Ryzen and EPYC processors,” Chief Executive Officer Lisa Su said in the statement. “Our focused execution and the investments we made in our high-performance computing roadmaps position us well for continued growth in 2020 and beyond.”AMD’s shares gained 148% last year making them the best performer on the S&P 500 Index. Earlier Tuesday, the stock closed up 2.6% at $50.53.AMD has said it’s targeting double-digit market share in servers by the middle of this year. The company is trying to reclaim a meaningful position in that lucrative market after dropping to less than 1%. Server computers are the backbone of corporate networks and the giant data centers that run the internet. Chips that power them can cost more than $10,000 each.Intel’s server chip unit grew 19% in the fourth quarter and revenue from cloud-service providers, which offer computing power and storage via the internet, surged 48%. Intel’s data center business gets more revenue in a quarter than the whole of AMD reports in year.Both companies have benefited from persistently strong demand for personal computers. Global PC shipments rose 2.3% from a year earlier in the fourth quarter as companies upgraded to a new version of Microsoft Corp.’s Windows operating system, according to research firm Gartner Inc. AMD has an even greater ability to cash in on this as it’s also the second-largest maker of chips used in computer graphics cards.On Tuesday, AMD said fourth-quarter net income rose to $170 million, or 15 cents a share, compared with $38 million, or 4 cents, a year earlier. Excluding certain items, profit in the period was 32 cents a share. Revenue gained 50% to $2.13 billion. Analysts had projected profit of 30 cents a share on sales of $2.1 billion.(Updates with comments from CEO in the sixth paragraph.)To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Gartner (IT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The analysts at Gartner have published their annual global device forecast, and while 2020 looks like it may be partly sunny, get ready for more showers and poor weather ahead. The analysts predict that a bump from new 5G technology will lead to total shipments of 2.16 billion units -- devices that include PCs, mobile handsets, watches, and all sizes of computing devices in between -- working out to a rise of 0.9% compared to 2019. As a point of comparison, last year Gartner revised its 2019 numbers at least three times, starting from "flat shipments" and ending at nearly four percent decline.
The latest estimates from research firm Gartner suggest enterprise software spend could grow at a double-digit rate both this year and next.
(Bloomberg) -- Worldwide shipments of personal computers increased 2.3% in the fourth quarter from a year earlier, continuing a 2019 trend fueled by commercial customers upgrading to Microsoft Corp.’s new operating system.Lenovo Group Ltd. held onto the top spot with almost 25% of the market amid a quest by PC makers to find new types of machines to entice customers.PC shipments climbed to 70.6 million units in the period that ended Dec. 31, researcher Gartner Inc. said Monday in a report. Competing firm IDC pegged the shipments at 71.8 million units, a 4.8% rise. For the year, the PC market grew for the first time since 2011, both firms said.For a third consecutive quarter, manufacturers received a boost from corporate clients upgrading devices to get access to Microsoft’s Windows 10 operating system. Microsoft will stop supporting Windows 7 Tuesday, according to the company’s website.With corporate upgrades expected to taper off this year, PC makers have searched for ways to shake up a market that has stagnated for years. Beijing-based Lenovo last week debuted a laptop with a folding screen at the CES consumer technology show in Las Vegas. Dell Technologies Inc. also unveiled two concepts that featured folding screens.“Despite the positivity surrounding 2019, the next twelve to eighteen months will be challenging for traditional PCs as the majority of Windows 10 upgrades will be in the rearview mirror and lingering concerns around component shortages and trade negotiations get ironed out,” said Jitesh Ubrani, research manager for IDC’s Worldwide Mobile Device Trackers. “Although new technologies such as 5G and dual- and folding-screen devices along with an uptake in gaming PCs will provide an uplift, these will take some time to coalesce.”HP Inc. maintained the global No. 2 spot with 22.8% of the market during the quarter. The U.S. company has sought to make its devices more stylish and has also entered the lucrative gaming PC market. Dell was again the third-largest seller, and its 12% year-over-year increase in shipments was the biggest gain of any major manufacturer in the quarter. The company focuses on selling PCs to corporate clients, to bolster profit margins through add-on software and services. Apple Inc. came in fourth place with 7.5% of the worldwide market.To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.