Longbow: IBM Pre-Announce Confirms Contract Mfg Weakness (at Barron's Online)

Longbow Research analyst Shawn M. Harrison offers this morning a “read-through,” as he calls it, on IBM’s Q3 pre-announcement from last night, and finds evidence in IBM’s lower-than-expected revenue to support a dim view of contract manufacturers. Writes Harrison: We estimate IBM is a high-single-digit percentage of revenue for Celestica (storage, i and p series servers, and some x and z-series servers) and BHE (POS terminals), while IBM is a low-single-digit percentage of revenue for Flextronics (storage and high-end servers through Solectron), Jabil... [read full story]