HP slashed its annual sales forecast Tuesday, sending the company's stock tumbling 9 per cent as consumers slashed their computer purchases and the company failed to match competitors' moves into lucrative cloud computing, according to dpa. The technology giant, which is the world's largest seller of PCs, saw revenues rise 3 per cent to 31.6 billion dollars, while earnings rose by 1 per cent to 2.3 billion dollars, from 2.2 billion dollars in the year ago quarter. But investors were disappointed in the company's earning outlook which predicted annual revenue of between 129 billion dollars and 130 billion dollars, down from the high of 131.5 billion dollars it had predicted in February. The company was forced to issue its earnings a day earlier than planned after a eaked memo from CEO Leo Apotheker spooked investors with its warnings of "another tough quarter" and a hiring slowdown. HP said that consumer purchases of PCs had dropped 23 per cent from a year earlier, in yet another sign of how the technology sector is being transformed by the popularity of tablet computers and smartphones that compete for customers' dollars and attention. The company's commercial PC sales were robust however, rising 13 per cent.
