Skip to Content
Commentary

Stay Connected to These 3 Tech Values

The surprisingly big drop in PC shipments during the first quarter is no reason to avoid these undervalued technology-sector firms.

Mentioned: , , , , , , , , ,

The tech world was taken aback this week when a report from the International Data Corporation showed that PC sales plummeted 14% in the first quarter, the largest drop in two decades. The industry had expected sales to be pressured, but the scale of the decrease was somewhat stunning. 

There are a number of factors pushing sales lower. One is consumers' continued love affair with smartphones and, increasingly, tablets. There is no need to buy a shiny new laptop or desktop if more of your focus is on your mobile device. PC makers also haven't innovated enough to convince users that it is worth upgrading to newer models. 
 Intel's (INTC) push to get makers to slim down designs (so-called Ultrabooks) has been greeted with a resounding sigh.  Microsoft's (MSFT) attempt to bring together the features of a desktop and tablet operating system in Windows 8 has hardly been a hit either. The new convertible form factors (laptops that convert into tablets) remain a niche product. Even  Apple (AAPL), whose PC unit had been growing faster than its peers' for years, now is also seeing a slowdown.

Jeremy Glaser has a position in the following securities mentioned above: MSFT. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.