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Taiwan quake effects being felt by PC makers

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Taiwan quake effects being felt by PC makers

Hewlett-Packard chief executive Carleton “Carly” Fiorina said the recent earthquake in Taiwan will slow fourth-quarter growth at the U.S. computer company.

“We said revenue growth would likely be in the 10 to 13 percent range…With the Taiwan disruption, which effects, most especially, our PC business, we don’t think we’ll achieve the high end of that range and are more likely to come in closer to the low end,” Fiorina said in a conference call.

“We are sure of some disruption and delay in some elements of our PC supply chain,” she added.

Investment house BancBoston Robertson Stephens downgraded Dell stock for similar reasons, citing the recent supply issues caused by the Taiwan earthquake, among other reasons, for dropping its earnings-per-share estimate from 0.77 to 0.74.

Delays in Taiwan component shipments are half the problem. The other issue is skyrocketing prices for those components. Graphics chipmaker S3 announced price increases this week tied directly to the Taiwan quake.

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