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IBM Sees Weak Earnings for 2016

The International Business Machines Corporation (IBM) is seeing weak earnings this year as it saw its fourth-quarter revenue fall by 8.5%. In extended trading, the shares of the company witnessed a 3% fall in revenue.

Focusing on the growth prospects, IBM is making a steady shift from hardware by making a sale of businesses that have a low margin. IBM will therefore sell off its low-end server and semiconductor businesses and focus on promising areas like security software and data analytics, and cloud-based services.   

It can’t be denied that the new business ventures have failed to cover up for the revenue loss owing to disinvestment. However, there was a 10% growth from the ‘strategic imperatives’ comprising cloud and mobile computing along with data analytics, social, and security software. 

Wang Lin

Wang Lin is a news writer at CapitalBay.News. She regularly covers news and events happening throughout the world across different sectors. Prior to joining CapitalBay.News, she worked as a freelance news writer for 2 years.

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