IBM revenue declines

IBM recently announced its Q3 2015 financial reports, in which sales fall more than expected. As a result, profits in 2015 will not be achieved as expected. This is the 14th consecutive quarter when the company's revenue is declining.

The Chinese market has a great influence on the business situation of IBM. When there were few of big contracts, the revenue  of IBM in this market decreased by 17%. It makes total revenues of IBM in Q3 decreased by 13.9% and reached 19.28 billion dollars, fewer 19.62 billion dollars  than expected.

Besides the difficult business in the Chinese market, and India, another reason for the revenue decline is the strong dollar. The value for the dollar has risen 17% from a year ago on the currency board, which makes the money really that IBM earned from foreign markets decreased.

The only bright spot in the business operation of IBM is in  cloud computing segment.Namely, its revenues increased 45% over last year and reached $9.4 billion. This strong growth was the result when IBM began to improve services and provided much better package for business customers, in order to compete with rivals like Amazon or Microsoft.

However, this business still can not improve the overall situation of the company. Because sales of global technology services dropped 10%, while the array of global business services dropped 13%.

IBM also has begun to take steps to change, focus more on business lines that bring more revenue and profits for the company. CEO Ginni Rometty call it "strategic imperatives", including arrays of cloud computing, mobile software, along with services and security analysts.

Data analysis will also be a promising business, where IBM owners supercomputer Watson that can be applied in many fields such as financial analysis, analysis of health care data, weather ...

IBM also said it has invested in the health sector when it IBM bought Merge Healthcare for $1 billion and will be cooperation with The Weather Channel to leverage the power of data analysis of supercomputer Watson.

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