Adobe: In Crummy Economy, Customers Delay Upgrades

February 19, 2009 at 11:37 am PT

Adobe (ADBE) shares are trading lower this morning after RBC Capital analyst Robert Breza trimmed his estimates and price target on the stock, noting that the upgrade cycle for the recently released Creative Suite 4 has been slowed by the weak economy.

“Our current checks indicate that Adobe’s end markets of enterprises, knowledge workers, designers, OEM partners and developers remain under pressure worldwide,” he writes. “Customers remain reluctant to part with cash and engage in education programs to upgrade to the newly released CS4.” He adds that checks with distribution partners find “a tough business climate” in the company’s fiscal first quarter ending this month. He says that it looks like more customers will skip the new version of Creative Suite and wait for version 5, due in a year or so.

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Tagged with: Adobe, Barrons, Creative Suite 4, economy, Eric Savitz, frontpage, RBC Capital, Robert Breza, Tech Trader Daily

comments so far. Add yours.

http://allthingsd.com/ Dave Barnes

No kidding.

But, it not just the recession (depression).

In my case, it was the price INCREASE of $100 for the CS4 upgrade.

Last Summer/Fall when I was NOT affected by the downturn, I thought about upgrading–as I always do–and decided not to. Because Adobe RAISED the price by $100. I was very unhappy and decided to wait.

Now, as the downturn hits my income, I will wait even longer.

Stupid Adobe, Stupid Adobe.

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