However, sales of larger hardware systems by other vendors have also slumped this quarter, signaling hesitation on the part of large companies to make big purchases in the current economic climate. For example, , which includes its hardware business, decreased by 13 percent year over year for the quarter ending Sept. 30. IBM, reporting Tuesday, said it generated $24.7 billion in revenue for the quarter, down 5 percent from the year-earlier period. Profit was flat at $3.8 billion. Sales slumped in the last month of the quarter, noted IBM Chief Financial Officer Mark Loughridge on the company's earnings call. While software did not suffer as much as hardware, there was not much to cheer about. Software revenue was $5.8 billion, down 1 percent year over year, while sales of middleware such as WebSphere, Tivoli and Lotus also dropped 1 percent, to $3.6 billion.

The general decline in hardware sales has affected chip vendors. As expected, due to both weak demand and lower selling prices -- a result of competitive pressure in a tough market. AMD earlier in the week put out preliminary results and Thursday's report confirmed the earlier figures. AMD total sales were $1.27 billion for the third quarter, dropping from $1.69 billion a year earlier, while the company reported a loss of $157 million. That compares with a profit of $97 million a year earlier. The company said it would lay off about 15 percent of its 11,813-employee workforce to cut costs and get back to profitability.

Intel, the world's biggest chip maker, said Tuesday that for the quarter ending in September, from $14.2 billion a year earlier. Profit also declined, to $2.97 billion from $3.47 billion.

"Our third-quarter results reflected a continuing tough economic environment," according to a succinct statement from CEO Paul Otellini. He did hold out some hope that ultrabooks, phones and tablets would help revive sales in the next few quarters.

It was also a tough quarter outside of the operating system, PC and chip markets, however.