It’s not just software.

Hardware shares are taking a beating Thursday, as investors grow increasingly worried about the prospects for Q3 earnings - and Q4 guidance. Shebly Seyrafi, an analyst now with Calyon Securities (his last stop was at Caris) Thursday warned that channel checks find hardware demand hit “an air pocket” starting in early September. He notes that international economics have weakened in recent weeks, that many hardware companies did not see the usual back-to-school pick up in demand, and that the financial sector has...