Hewlett Packard Co slashed its 2011 earnings forecast as it went on a spending spree to revamp one of its troubled divisions. Meanwhile, long time competitor and foe Dell Inc has delivered a blowout profit, surprising many at the international markets.
The twin leaders of the global PC industry are increasingly venturing into higher margin services; helping corporations set up networks, servers and storage to engage the cloud.
?Dell was a company that was struggling and it paid its dues in terms of investing. While HP under spent, in services in particular, and they are suffering for it, ?said an industry insider.
HP trimmed its sales forecast for the second straight quarter. Dell, on the other hand, raised its operating income outlook for the year on improved profitability.