Intel says PC spending decisions by business due soon
By Ian King, Bloomberg
July 31, 2009, 10:23 am TWN
Intel Corp., the world's largest maker of semiconductors, said a recovery in information technology spending hinges on decisions that businesses make in the next three months.
If companies don't opt to replace business hardware soon, the rebound in demand will be further delayed, Sean Maloney, Intel's head of sales, said at a company event in San Francisco.
Large-scale corporate spending decisions are typically made by November,
Maloney said. Finance chiefs need to allow their technology managers to order new machinery by then, or they may have to wait another year, he said.
"If they don't, then IT spending is not going to recover," he said.
Consumer demand for laptops has held up better, Maloney said. Last month, Intel gave sales forecasts that beat analysts' estimates, sparking speculation that PC demand is rebounding quicker than earlier projections.
Companies are still using a "massive, massive number of three-year-old or more computers," Maloney said. Those machines will probably not be able to run Microsoft Corp.'s new Windows 7 operating system, he said. That product is scheduled for release in October.
"The industry is moving outside traditional norms, because of the push-out you've seen in the last 12 months," he said.
Intel rose 3 cents to US$19.40 at 4 p.m. New York time in Nasdaq Stock Market trading. The stock has gained 32 percent this year.