(Reuters) – IBM, the world’s largest technology services company, reported quarterly revenue that missed estimates for the fourth straight quarter, due to a steep fall in demand for servers and storage products in emerging markets such as China.
International Business Machines Corp shares fell 3.5 percent to $181.68 in after-hours trade.
Chief Executive Ginni Rometty said she and her team would forego their annual incentive payments for 2013, as IBM failed to grow revenue, especially in growth markets such as China.
Revenue in IBM’s hardware business, which includes server and storage products, fell for the ninth straight quarter as more companies switch to cloud computing services from traditional IT infrastructure.
IBM’s revenue also took a hit in emerging economies as a backlash against U.S. government spying contributed to plummeting demand. Asia-Pacific revenue fell 16 percent, while that from Brazil, Russia, India and China fell 14 percent in the quarter.
I have no sympathy for IBM’s shareholders.
After all, it is they who have allowed the management of IBM to stick it to their employees, and to their customers, and without those two, you have nothing but blood sucking parasites raping and pillaging the companies that they were entrusted to run.
Don’t believe me?
Do a little homework for a change.
Start here for a employee viewpoint.
Start here for a customer viewpoint.
As a matter of fact, you might want to read all of these articles.
Those of you with preconceived notions will say this is not happening.
But those of us that used to live the middle class lifestyle by working for our corporations can tell you with 100% certainty that is is happening and it is going to have an impact on the earnings of our corporations like McDonalds, and even Pearsons.
Today I wrote a email to the Secretary of Commerce disputing something she said in Davos today on CNBC, and I challenged her to make sure that the President of the United States of America saw it, but since they suffer from preconceived notions, I doubt it will make it past their delete key.
Which is why I’m going to publish it here.
That way the shareholders of our corporations, and the people of America can do their due diligence if they want too.
The question is, will they?
I was just listening to Mrs. Pritzker on CNBC in Davos where she stated that 90% of our customers are outside of the United States.
This is totally inaccurate.
While I will concede that 90% of our POTENTIAL customers are outside of the United States, if you use the population totals.
If you do your due diligence, you will find that America and Europe account for the majority of the demand among all countries.
As an example, let’s take a look at Infosys which is not even an American company, but accounts for the majority of software developers like myself being out of work.
Where do you think that the majority of their revenue comes from?
- 63% North America
- 22% Europe
- 13% Rest of World
- 2% India
In every corporation that I have reviewed, I find similar numbers.
Now let’s look at populations:
- Nearly 1 billion in the United States and Europe, or democratic countries
- A little over 1 billion in China which is a communist country by the way and will be using our money to be our foe in the future.
- A little over 1 billion in India
Now let’s look at buying power:
- 1 billion times an average wage of $50,000.00 per year in the democratic countries or $50,000,000,000,000.00
- 1 billion times an average wage of $5,470.00 per year in China or $5,470,000,000,000.00
- 1 billion times an average wage of $1,860.00 per year in India or $ $1,860,000,000,000.00
I believe all of us can see where the demand is, can’t we?
Would any of you care to tell me why we are destroying the demand in our global economy by doing this?
The U.S.-based CEO of one of the world’s largest hedge funds told me that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade,” the CEO recalled.
I realize this is an attempt to create perpetual energy by jumpstarting the economies of other countries at the expense of the American and European economies.
That part is working, because believe you me, we are destroying the American economy on main street.
In 2002 I made $2,700 per week as a software consultant.
In 2012 I made $8,001 for the entire year on unemployment which has ended, and I can’t even buy an interview anymore, and don’t tell me that we hire veterans in America because I can’t even get a job at the local va hospital in Kerrville washing dirty skivvies.
I have our government which is supposed to be of the people, and for the people, to thank for that.
Problem is, your jumpstarting will not work because of corporate greed, and other issues in what I call our game of musical countries.
“We have been seeing wage inflation over the past several months,’’ said Chris Ruffle, who helps manage $19 billion as China co-chairman of Martin Currie Ltd. Rising salaries may prompt businesses that operate plants in China to move to lower-cost countries such as Vietnam and Cambodia, Ruffle said
Example 1 above
Examples 2, 3, and 4 follow
Cambodia’s low wages lure manufacturers away from China, other countries
The 3 Countries Stealing China’s Business
Corporations Are Moving Out Of China To Even Lower Wage Countries
A tip of the hat to Bud for supplying these examples
Would any of you care to explain to me why we are throwing away our bird in hand for a bird in the bush?
- $50,000,000,000,000.00 ( Bird in Hand )
- $7,330,000,000,000.00 ( Bird in Bush ) Combined potential of China and India
Perhaps it is time that we all do our part to Keep America At Work?
Study those last two numbers carefully because they will show you why the global economy has stalled if you will just open your eyes and use your mind for something other than holding your ears up.
Oh yes, one additional question.
I have tried repeatedly to get this info in front of the White House and have failed every single time.
As you may have noticed, I cc’ed every email address I could find.
Which one of you will have the cajones to forward this email to the white house, or will all of you be complicit in making sure that the White house does not see this?
If so, you are wasting your time, because I’m bound and determined to find a way to get this message out there.
After all, MY FUTURE depends on it.
Do you want your own website for your business or blog?
Editor / Publisher
Going Forward with K.A.A.W.
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Keep America At Work