- Perhaps among the most eagerly awaited earnings were those of Apple
(Nasdaq: AAPL), which did not disappoint. The tech giant said net income [rose] 78% on the strength of both the iPad and the iPhone.
- One bellwether for the tech industry has been IBM
(NYSE: IBM). According to Larry Dignan of ZDNet, IBM reported Q2 earnings on Tuesday of $2.61 a share, beating analyst estimates of $2.58 a share.
- According to Sanjay Singh of Wedbush Securities, the tech sector has struggled in Europe thanks to a depreciating euro and concerns about austerity measures in several regions. However, Singh believes that the demand for IT related hardware and software such as virtualization and data-center consolidation has remained strong. [Tech ETFs Move After Intel Earnings.]
- Singh does cite a strong IT spending environment in the United States and Asia. In the near term though, he expects Q3 guidance to dominate investor focus.
If consumers continue to spend on high-margin Apple products and companies continue to upgrade their technology infrastructure, the tech sector may have the potential to lead the market out its doldrums. [The Bright Future for Solar ETFs.]
Sumin Kim contributed to this article.
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