Hewlett-Packard shares tumbled by 11% in after-hours trading on Tuesday after it announced a disappointing quarter's financial results. HP's sales were $17.3 billion: up by 5% "but $200 million shy of Wall Street estimates", according to USA Today. "HP's PC division lost $56 million in the quarter."
On Wednesday, "Dell cut prices on computers, printers and other products by up to 22%," as Reuters reported.
The timing of the release was "serendipitous," a Dell spokeswoman said.
Comment: Dell is (very roughly) half the size of HP, but it is in a position of strength, with profits up 24% and shipments up 27% in the last quarter (below). HP can now choose between cutting PC prices and losing even more money, or holding them and losing market share.
