Is The Street Too Cautious on 2010 PC Sales?
It looks like 2010 could be an impressive rebound year for the PC sector–and in particular the disk-drive, processor and memory chip companies that provide key parts.
In fact, as Avian Securites research chief Avi Cohen asserts in a note this morning, mainstream forecasts for PC unit growth in 2010 could be too low. Cohen notes that IDC, for instance, is projecting 10 percent growth. But he contends that “normalized” PC growth is 13 percent-15 percent, and points out that growth in the year following a Microsoft (MSFT) OS upgrade tends to be closer to 20 percent.
Cohen thinks a variety of factors are setting the stage for a strong year for the PC component stocks: