Supplier Report: 10/10/2015

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It was a very interesting news week.  The big talk going into the weekend is that Dell is making a play for EMC.  Dell would have to borrow a substantial amount of money to make this happen, and the rumor is that they are only interested in certain pieces, potentially breaking up Joe’s empire.

Speaking of empire building, Amazon is coming on strong this week with the announcement of their own IoT environment strategy AND a strategic partnership with Accenture to sell services.  This is a very interesting combination that demonstrates Amazon’s desire to overtake the enterprise market.

Microsoft also made waves with their laptop announcement.  As Microsoft unleashes their own products and hardware to go against Apple, what is left for HP Inc, Lenovo, and Dell?

Oh yeah, and IBM is creating AI to eliminate everybody’s job… just kidding (or so Ginny says).

IBM

EMC

  • Wait… there is EMC talks that don’t involve divesting or mergers with HP?

    The details surrounding this proposed merger are still very sketchy, with CNBC reporting that Dell would have to pay north of $27 a share, and the WSJ suggesting that Dell may only be interested in “parts” of EMC. Regardless, if Dell acquires EMC or picks off its best parts, there isn’t much investment upside beyond the short-term buyout pop that is likely already priced in EMC stock. However, if EMC acquires Dell, it could be a different story. Further, the Dell and EMC merger would be bad for the likes of HP and IBM.

    http://investorplace.com/2015/10/dell-emc-merger-great-fit-bad-hp-ibm/

  • More on the potential merger:

Hewlett Packard

  • Apple Can’t Kill Microsoft But It’s Crushing HP

    PC sales have declined as consumers flock to Apple Inc. (NASDAQ:AAPL) and Android devices instead. Gartner’s data is just the latest example of the personal computer’s secular fall and is bad news for Lenovo, the top PC maker with 20% market share, and Hewlett-Packard Company (NYSE:HPQ), the PC maker in second place. Weak PC sales have been killing Hewlett-Packard as shares are off more than 26% year to date. Microsoft has done reasonably well with its shares up 4.23% year to date, as the company’s Office and Server products are more than offsetting Windows’ decline. Investors can only hope Hewlett-Packard’s additional layoffs and cost control measures will turn things around for the giant.

    http://www.insidermonkey.com/blog/apple-cant-kill-microsoft-but-its-crushing-hp-376244/

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