Cash-strapped consumers have been slow to buy personal computers in the recession. But with the launch of Microsoft Corp.’s (MSFT) new Windows 7 operating system Thursday, PC makers are aiming to reverse that trend–and then some.

Companies are expecting that Windows 7’s improved features over earlier Microsoft operating systems, including Vista and XP, will lure more consumers into stores. And they are betting that heightened demand will allow them to stanch recent price declines in the market.

Hewlett-Packard Co. (HPQ), Dell Inc. (DELL), Toshiba America Inc. and Acer Inc., among others, are releasing a flood of high-end laptops with slim cases and glossy designs, and new one-piece touch-screen desktops, that they hope consumers will be willing to pay a premium for.

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Hewlett-Packard (HPQ) this afternoon reported results for its fiscal fourth quarter ended Oct. 31 that were just as advertised in their pre-announcement last week.

As forecast, the company posted revenue of $33.6 billion in the quarter, with profits of $1.03 a share. The company said revenue ex-EDS grew five percent, or two percent adjusted for currency. Not exactly a huge growth story, and some sectors shrank. Notebook revenue grew 21 percent, but desktop revenue declined two percent. Revenue for the printer group fell one percent, as commercial hardware revenue fell 10 percent and consumer hardware revenue fell 21 percent. Printer units were down eight percent. But operating margins for the group increased to 15.5 percent, from 14.5 percent, which translated into an operating profit increase to $1.2 billion, from $1.1 billion.

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Apple (AAPL) shares are down sharply Monday morning after analysts at RBC Capital and Morgan Stanley cut their ratings on the stock.

RBC Capital’s Mike Abramsky cut his rating on the stock to Sector Perform from Outperform; his price target on the shares is now $140, down from $200. He cut his FY 2008 EPS estimate to $5.26, from $5.28; for 2009 he goes to $5.75 from $6.07; for FY 2010 he’s now at $7.38, down from $8.03. Abramsky says his new more cautious stance reflects “a worsening consumer spending environment.” He says a recent survey RBC conducted with research firm ChangeWave found a drop in the number of consumers intending to buy Macs: 29 percent intend to buy Mac laptops in the next 90 days, down from 34 percent in August, while 26 percent intend to buy a Mac desktop, down from 30 percent. Abramsky says that is the biggest decline in those measures in 2.5 years.

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