Tech Teeters on Consumers' Shoulders

Updated from 2:32 p.m. EDT April 29

Tech has turned a corner, and also a deaf ear to the economy.

The free-falling demand and inventory pile-ups that crushed business prospects going into the year are starting to ease, and some companies are seeing signs of stability.

In the past week, about a dozen big tech companies reported earnings, and roughly half of that sampling had significantly changed outlooks on business conditions since January.

Qualcomm (QCOM), Nokia (NOK), Juniper (JNPR), Microsoft (MSFT), eBay (EBAY) and Verizon (VZ) all said, while the economy remains challenging, key elements of their businesses had stopped deteriorating, according to reporter notes and conference call transcripts provided by SeekingAlpha.

"We see some indications of stability and pockets of replenishment," wireless chipmaker Qualcomm CFO Bill Keitel said Monday. Verizon echoed the theme Monday, though perhaps less glowingly. "We are not seeing things getting worse," COO Denny Strigl said. "I would qualify it as consistent."

Left out of the party -- IBM (IBM), Google (GOOG), Apple (AAPL), Amazon (AMZN), AT&T (T) and EMC (EMC) did not see the same trend, or at least did not indicate any overall changes in the effects of a slumping economy or the pace of order declines. However, with the exception of EMC, each delivered stronger-than-expected first-quarter results.

On Thursday, however, No. 1 cable operator Comcast (CMCSA) broke from the optimists' ranks after beating analysts' first-quarter financial targets. The Philly cable outfit said consumers weren't buying as many of its services in March and April as they had earlier this year. Comcast didn't blame the heated competition from telcos, but pointed squarely at the faltering economy, a claim not many tech companies have made lately.

The financial crisis, which turned critical last fall with the collapse of six major firms, was enough to shock corporate IT buyers and consumer electronics fans into retreat on purchases. Now, with less fear of widespread mortgage foreclosures and bank failures, the spending clampdown in some segments of the market is easing, say some executives and analysts.