Dell CFO sees a silver lining for PC market

Demand for PCs is still strong, according to Dell's Jim Schneider.

The PC maker's CFO addressed an audience in the Banc of America Securities Technology conference in San Francisco yesterday.

However, Schneider was unable to pin down exactly when this demand would translate into an upturn in sales.

He explained to delegates that the last jump in sales due to companies upgrading to more powerful machines occurred in 1999, although he said he could not predict whether the next upgrade cycle would come in the second quarter of this year or the second half.

Companies replace their PCs once every three years or so, so a mass migration to new PCs should be in the offing. The introduction of XP, more powerful processors and cheaper memory make this prospect all the more likely.

Dell will post its fourth quarter interim report on Friday and is expected to post revenues above analysts' expectations.