IBM CEO Arvind Krishna warned that the company struggled over the past three months as customers rapidly changed their technology budgets. This shift in spending habits led to a significant decline in sales of IBM’s new z17 mainframe computer.
Challenges in the Tech Industry
The price of microchips, particularly memory and storage processors, has surged in recent months, causing customers to reprioritize their spending. IBM’s customers were also distracted by Anthropic’s Mythos debut, which potentially poses cybersecurity risks to corporate systems.
As a result, IBM’s preliminary sales grew just 1% in the past quarter, and its unadjusted earnings per share fell 2%. The company is working to innovate and adapt to the changing landscape, including the launch of its Lightwell open-source security software.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
