Channel Tech Earnings Stay Strong
Tech companies with a strong channel presence seem to be doing well as the earnings season starts to unfold. Despite fears of a general economic slowdown, the tech sector seems to be hanging in well.
EMC, Apple and Yahoo all reported better than expected earnings earlier this week. Acer, a strong channel player, not only posted strong results in the first quarter, but raised its sales forecast for the rest of this year. The company believes notebook sales could rise 40 percent this year. Sales and profits also are being boosted by an expansion into fast-growing markets outside the U.S. such as Brazil, Russia, India and China.
All of this suggests businesses are willing, at least for now, to keep investing in technology, especially if it helps improve efficiency. Offshore consumer sales also look like a bright spot as economies in developing nations continue to expand. All of these trends could help other strong channel players such as Cisco, Hewlett-Packard and Cisco, which are set to report quarterly financials next month.