IBM reports Q3 earnings drop

<p>Earnings were down for IBM in the third quarter.</p>

IBM has reported a decline in earnings and sales during the third quarter of the year.

The computer manufacturer announced that despite these falls, it was still able to record a net income of $4 billion (£2.5 billion), which is a rise of six per cent.

It is now almost two years since the technology announced a rise in quarterly sales.

IBM revealed that it suffered a four per cent decline in sales in the three months to September, which was even worse than analysts had predicted.

There was a 17 per cent fall in sales for the computer hardware division of the firm over the course of the three-month period. The share price of the company dropped by six per cent in after-hours trading on the back of the results.

"I think that the hardware business is going to be something they need to work through and growth markets are down much more than expected," said Josh Olson analyst, Edward Jones.

IBM is one of the world's largest technology companies, but has seen its fortunes fade in the last few years.

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