As concerns about PC sales mount, even Lenovo gets hurt

Chinese PC maker Lenovo has seen its shares take a slide on concerns that a slowing US economy could hurt computer sales. Oddly, the US is not Lenovo's largest market, not even close.

Lenovo shares "dived more than 14 percent on Wednesday after a broker cut the Chinese firm to sell on growing fears of a US recession," according to Reuters. Lenovo would like to be a major force in the US PC market, but most of its sales are in Asia.

Concerns about Lenovo's prospects in the US make the fortunes of Hewlett-Packard (NYSE: HPQ) and Dell (NASDAQ: DELL) look even worse. Dell shares are back at a 52-week low of about $20. The return of the company's founder has done nothing for shareholders. The mighty HP, which has outperformed most tech stocks over the last two years, has traded off 16% over the last month.

The question for all of the PC companies is whether the consumer will delay purchases of $1,000. While car sales, at $25,000 a pop, may be set-back along with sales of houses, smaller ticket items might make it through a mild recession. Corporations may also be willing to continue upgrading their PC supplies.

News of the death of PC sales may be premature. New models and attractive prices could keep computer sales in positive territory.

Douglas A. McIntyre is an editor at 247wallst.com.