How analysts get all those numbers; Hint, they make it up

A former IDC researcher:

“So, the mantra became, preserve the growth rates; to hell with the actual numbers. Even the growth rates are fiction. The fudge is in the “others” category, which is used as a plug to make the numbers work out. In fairness, we did do survey work, calling around, and attending white box conferences and venues to try to get a feel for that market, but in the end, the process was political. I used to tell customers which parts of the data they could trust, essentially the major vendors by form factor and region. The rest was garbage.”

So they make shit up.



  • David Wyndham

    Numbers are like a skimpy bathing suit. What they reveal is interesting but what they cover up is vital. Always need to see what biases the analyst/company has.

  • Guest
  • John

    Strategy, forecasts, trending, KPI’s, market movements, etc.

    It all has “confirmation bias”. This sort of stuff isn’t exactly a double blind experiment.

  • rogifan

    I wish Tim Cook would quit referencing IDC in earnings call. Just gives them legitimacy they don’t deserve.

    • http://www.laugh-eat.com/ kyron

      how do you sleep at nite?

      • rattyuk

        Easily.

        Not so much with the snarky comments though.

        • http://www.laugh-eat.com/ kyron

          oh nos.

          sorry, but ive read enough of rogifan’s unique set of worries and concerns (“bean counter”, obama, etc…), my comments are just as interesting to me as his or yours.

  • Terry Maraccini

    Blogger = Person who writes about made up stuff. Tech companies (including Apple) spread PR from these same people when they paint a rosy picture. Then, they rely on the hang dog press to beat a retreat for them when the picture painted isn’t so rosy.

    An analyst’s job is top sell commodities for their employer.

  • stsk

    PED’s article (following DED’s article) paraphrased: “They totally pull the numbers out of their asses. The side of their asses from which they’re pulled is determined by who’s paying.”