* Restarts IT hardware sector with "neutral"
* Restarts Apple and EMC at "buy"
* Rates Dell and HP as "sell"
* Sees shift from traditional Windows-Intel base
Dec 13 Goldman Sachs sees tablets eating into
the market for PCs based on Intel processors and Windows in
2011, implying a tough time ahead for Dell Inc DELL.O and
Hewlett-Packard Co (HPQ.N).
"What is surprising is that many of these products
(tablets) are not utilizing Intel microprocessors or a
Microsoft operating environment ... this would be the first
time in three decades that a non-Wintel technology has made
legitimate inroads into personal computing," analyst Bill
Shope said in a note to clients on Sunday.
The brokerage resumed coverage of the hardware sector with
a "neutral" rating, saying cyclically driven fundamentals are
giving way to secular growth themes for individual vendors.
Goldman Sachs restarted Apple Inc (AAPL.O) at "buy" as it
expects new product launches next year to continue to add to
the company's consumer PC market share.
Shope, who has "sell" ratings on Dell and HP, said they
need to investment more in organic growth and M&A, which would
in turn weigh on their earnings.
"Rich cash balances of most technology companies and the
low cost of corporate debt has made M&A a key theme within the
sector," he said.
Dell on Monday agreed to acquire data storage operator
Compellent Technologies Inc CML.N for $960 million.
(Reporting by Himank Sharma in Bangalore; Editing by Joyjeet
((email@example.com; within U.S +1 646 223
8780; Outside U.S +91 080 4135 5800; Reuters messaging:
Keywords: ITHARDWARE RESEARCH/GOLDMAN
(C) Reuters 2010. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.