PREVIEW-HP, Dell results due as economic crisis worsens

By Gabriel Madway

SAN FRANCISCO, Nov 13 (Reuters) - Hewlett-Packard Co (HPQ.N) and Dell Inc (DELL.O) are set to report quarterly results in the most depressed economic climate since the Great Depression, with the outlook for the PC industry rather grim.

HP, with its recurring streams of revenue from services and printing supplies, may be able to better insulate itself from a decline in sales, and analysts expect the company's recent purchase of technology services provider EDS to generate cost savings.

Analysts paint a different picture for Dell.

"Keep in mind that Dell has a much higher exposure to PCs than HP," said Shannon Cross of Cross Research. "HP is much more diversified. Now, that doesn't mean that HP is not exposed to consumer and corporate just like everybody else."

Investors will be looking for signs of whether Dell will cut prices to gain market share and how HP plans to further diversify.

Dell, based in Round Rock, Texas, is scheduled to release it earnings report on Nov 20, and HP, based in Palo Alto, Calif, is due to report results on Nov 24.

On Wednesday, bellwether chipmaker Intel Corp (INTC.O) issued a revenue warning, feeding concerns about IT spending. Earlier in the week, Best Buy slashed its outlook, heightening worries about consumer demand.

After Intel's warning, Goldman Sachs and BMO Capital Markets both downgraded Dell.