It is already certain that the good old day when IBM rivaled companies like Apple Inc for supremacy in the tech market are long gone. What once has been one of the most influential tech company of the world, now represents a business whose income knows an almost progressive decline, as IBM revenue continues to decrease for the 12th quarter in a row.
On Monday, the American tech company has made public a report on the earnings of the first quarter of the current year. As most analysts have foreseen, IBM announced another revenue drop, which is the 12th such decrease in the last 12th quarters. And there are not many voices to predict an auspicious fate to the tech company, with the majority of analysts affirming that the situation of IBM will probably not change for better until the fourth quarter of 2015, from and optimistic point of view.
Not even the Wall Street analysts who tend to predict enormous share raises estimate that the poor sentiment which has been manifested by the big investors would be modified by a possible progress of the tech company.
Recently, there has been reported a 0.9 per cent to 164.68 dollars drop of IBM shares. Over the last twelve months, the IBM shares have been down by 14 per cent. However, the IBM shares are still up nearly 9 per cent of the last earnings report of the American tech company, which took place approximately three months ago.
The situation that IBM is going through attracted the interest of a lot of analysts, if not the interest of the big investors. Most of the experts have affirmed that the progress which IBM has shown during the last quarter may have been caused by the considerable number of sales by the American tech company, on the background of a clear refresh of the hardware industry.
Most probably in an ironic way, many of the analysts have said that IBM could be in a transition phase. They have explained that maybe IBM will soon forget about the tradition in hardware that made them famous, and turn to a cloud company which offers software as a service.
The revenue of IBM which came from hardware sales of 1.66 billion dollars remained up 30 per cent year over year.
“All segments save hardware (8% of revenue) were down, and we see little prospect of overall y/y growth until at least 4Q,”
analyst Joseph Foresi commented on the matter.
Image Source: Apple Magazine