Monday, October 19, 2015

IBM Posts 14th Straight Decline, Sees Sharpest Drop in China; A Measure of Corporate Decline

When IBM reported its quarterly earnings tonight, everyone knew revenue would show a decline. After all, IBM had declining revenue in the previous 13 quarters and showed no sign of a sudden turnaround. Revenue was down more than expected this time, down 19 percent from a year ago. The sharpest drop in sales came in China, IBM said, while the strongest increase, or perhaps the only large increase, was in India.

IBM sells mostly to the large-enterprise sector, so its long-term decline speaks to the declining fortunes of large corporations collectively. That China was where IBM saw the steepest decline hints that China may not be immune to the misfortunes of the large-corporate sector.

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