Intel, Dell, and HP are Predicting a Tech Recovery for the Remainder of 2009

Posted 08/30/2009 at 7:29am | by Justin Kerr

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Stronger than expected demand for microprocessors has prompted Intel to raise its Q3 forecast from $8.1 billion to $9.2 billion, and the good news is they aren’t the only ones predicting better times ahead. Both HP and Dell are forecasting Q3 revenues to rise, though this news comes hot on the heels of disappointing year to date earnings.

On Thursday, Dell reported a 23 percent drop in Q2 profit, but still managed to beat the street estimates. CEO Michael Dell claims, “if current demand trends continue, we expect revenue for the second half of the year to be stronger than the first half”. Rival Hewlett-Packard reported a similarly depressing drop in profit of 19 percent for the first half of the year, but is also expecting the trend to reverse itself soon.

The PC Industry is expected to benefit from the economic stimulus package in China, as well as what appears to be the start of an economic recovery in the U.S. Windows 7 is also expected to help move PCs in the consumer sector, but businesses will likely put off upgrading for at least a year or more.