Software and Hardware Giants Face China CrisisAdded: Friday, July 20th, 2012
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The industry observers expect bad results next week: even Intel is expected to report bad sales growth, because China’s slowing economy definitely shows falling demand for personal computers.
Indeed, the analysts are expecting to hear sad stories from the giants when they report their results. Undoubtedly, Microsoft and Intel will have sinking profits, but they will have to report the rise of the sales for around 5% from a previous year.
According to Bloomberg, the growth has been slowing in the world’s biggest computer market since 2011, which revealed that electronics makers can’t count on Asia to counterbalance falling demand in Europe and the United States. Too bad for Intel.
The situation has already hurt AMD that announced its revenue fell 11% in the second quarter because of weaknesses in China and Europe. Other doom was clearer after Applied Materials, the hardware giant’s major supplier, cut its annual targets a few days ago, citing delayed orders for its chipmaking equipment due to weaker end-market demand for semiconductors in those regions.
China showed its weakest expansion in 3 years in the second quarter, while its economy improved by 7.6% from a previous year. Ironically enough, one of the reasons is because the Chinese are dependant on orders of American and European tech companies. And since American and European sales fall, so do the orders into the outsourced plants in China.
Another problem Intel faces is that the analysts warn the consumers and the companies are pulling back on spending in result. The manufacturer knows that if it also talks about a technology meltdown it will just make matters worse. That’s why it’s expected to be upbeat when it announces the results of the growth.
In the meantime, Microsoft is also suffering and missing its targets while the Windows group is missing the experts’ estimates in 4 of the 6 quarters. Media reports claim that it is thanks to customers shifting to devices like tablets which don’t run the OS, but in reality it is more likely thanks to people hanging on to computers longer having been put off by a lackluster economic recovery in the United States and concerns about the debt crisis in EU.
It isn’t helped by the fact that consumers are putting off buying a computer until after Windows 8 is released. Anyway, the current results are not so good for technology companies.
July 20th,2012Posted by:
Friday, July 20th, 2012
|posted by (2012-07-20 19:40:16)|
|Good post SaM even when Windows 8 comes out i dont think hey will see the results there expecting, there was such a push for windows 7 that people use it and are used to using it a lot like XP was and is in my book.. but the same problem applys people are just upgrading there not buying new, I do computer repairs and were seeing big increase in laptop and pc upgrades in the last few months, people are pulling in there purse strings, they can already go on facebook and youtube and download movies without any problems and all a new os will do is confuse them. My expectation is another ME like OS crash...|
|More like Linux than 98` I believe since they have worked with Suse for some years and despite Suse Linux being one of the less fabulous Linux operating systems it is still one up on anything windows can offer which is why I dual boot windows and fedora.|
|posted by (2012-07-21 12:52:04)|
|I don't feel any sympathy for them, making billions per year and paying the employees minimum wage.|
|posted by (2012-07-21 16:00:02)|
|@edddy: that's exactly right.|
ya know if they would start leave china and go back to japan and start making products that worked they would have less problems.
the other issue is that they are just to dam greedy like the entertainment industry is and they are setting there prices way to dam Hi for the common folk to buy.
I mean common....no one has jobs, or can they not understand that fact?
|This is the time to shift their company from China.. Because We need some standard on their products. If you see every items comes from china and they have no long-time potentiality....|
|posted by (2012-07-23 04:56:22)|
|amitb you noob, makes no difference even if the products come from india, or russia or europe etc... especially if the components are just as crap. so if u wanna blame someone blame the companies for using cheap crappy components, not the people who assembled them|
|Good i hope they go broke,in fact any Corp that outsourced American jobs to the cheapest labor should be shutdown anyway,f'em all..Take our country back from the rich.Time for a change..............||
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