Biggish Blue said that its hardware sector to grow in 2015 as the company invests in research and development and flogs off low-performing ventures. This comment comes a month IBM reported its lowest quarterly revenue in five years, weighed by sluggish global demand for its hardware, which plunged 23 percent in the first quarter of 2014.
The company added that growth in Latin America, the Middle East and Africa remains strong, and blamed falling revenue in China on government reforms affecting state-owned clients. Chief Financial Officer Martin Schroeter said to stabilise the hardware sector IBM would continue to refresh hardware and further invest in research and development.
He said that IBM was seeing good growth out of software, good growth out of services, but challenges in hardware.
"We will stabilise that hardware base and I am comfortable we will make that happen in 2014,” he said.
But he warned that higher tax rates will cost IBM $1.50 per share as tax credits run out.