News
White Plains, NY -- Nortel and IBM have signed an agreement designed to support customized products across a range of market segments. As the first step in this relationship, the companies will establish a Joint Development,Center in Research Triangle Park, NC, to collaborate on the design and development of new products and services.
Nortel expects to utilize IBM engineering and technical services for a number of projects, aimed at broadening Nortel end-to-end broadband, Voice over IP, multimedia services and applications and wireless broadband offerings.
PALO ALTO, CA -- Inventory throughout the supply chain decreased in the first quarter of 2005, albeit not as fast as sales/COGS, resulting in a moderate decrease in inventory velocity.
Deutsche Bank analysts believe communications OEMs will likely work inventory levels lower in 2Q and 3Q in the face of only moderate end market demand (negatively impacting near-term EMS demand).
PALO ALTO, CA -- IBM recently held an analyst meeting in New York that provided an update on the company's view of IT spending trends, an overview of its strategic positioning, actions it is implementing to take advantage of market opportunity, a recap of the 1Q miss, and an update on recent business trends.
According to Deutsche Bank analysts, the actions IBM is taking to drive standardization and cost reduction in services will better position the company for profitable share gains. In the near term, recent improvement in bookings trends (in both services and hardware) provides greater visibility on near-term performance.
In addition, DB states that benefits from restructuring, new product cycles in servers and microelectronics, and a potential mainframe cycle could support a solid 2H EPS recovery.
