Fears of recession in US causes ?over-reaction? on stock market

Share dealers push down PC vendors

The world’s leading PC vendors are seeing volume selling of their companies’ stock push down their share prices.

Lenovo shares dropped more than 14 per cent on Wednesday following growing fears over the US economy.

Hewlett Packard, Dell and Acer have also seen their shares plunge 15 per cent since the start of 2008 following fears that consumers and companies could cut back technology spending.

However, some analysts believe that the market is overly anxious, especially when it comes to Lenovo, which could be partly shielded by problems in the US, as the firm enjoys overwhelming dominance in China.

 "The market might have over-reacted," said Cazenove analyst Zhao Xin. "Among all the major PC makers, Lenovo has the least exposure to the US market. If IT spending in US corporations slows down, the most affected products will be high-end servers, which Lenovo has less exposure to."

All four major vendors have plans to counteract recession fears with a series of new, consumer-friendly products.

Dell has revealed a new stylish range of laptops, HP and Acer have announced the launch of new gaming machines, whereas Lenovo has released consumer-friendly computers, which feature face recognition technology.

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