Dell’s confession that business in August and September has stunk prompted several other tech vendors–HP, for example–to rush to say that their business was still fine. Which means either that Dell really is a hairball or that everyone else is lying (or, charitably, clueless).
So which is it?
Based on Dell’s troubles in recent years, we’re happy to believe that they’re at least some (and probably most) of the problem. But based on Dell’s specificity about weakness in various geographies, we’d be shocked if Dell were the whole problem.
So go ahead and celebrate the news of HP’s EDS firings, which should enable the company to blow out its conservative bottom line guidance. But as you’re passing around the champagne, don’t forget that the Street usually rewards revenue upside, not EPS, and that customer contagions infecting smaller competitors like Dell eventually work their way up to the big dogs.
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