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TheStreet Open House

Microsoft Feeling PC Strain: Analyst

Stocks in this article: HPQDELLAAPLMSFT

Almost the entire PC space saw a decline, as companies like HP (HPQ), Dell (DELL), and Asus saw declines worldwide. Only Lenovo was able to show flat growth worldwide, and actually showed improvement in the U.S. market, growing 13% to 1.27 million units.

Both HP and Dell are undergoing massive restructuring efforts, and Lenovo has been able to take advantage of that, with an aggressive product strategy. One interesting tidbit is that this isn't just about price, as the bottom end vendors aren't growing in the U.S., so it's not just about shelling out less dollars for any old computer. Companies are having a hard time innovating, and that's being seen in the results.

-- Written by Chris Ciaccia in New York

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