Tech Companies Face China CrisisAdded: Tuesday, March 5th, 2013
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It seems that the situation in the market changed within recent years and the reality is starting to bite in China, with such giants as Intel and Microsoft suffering.
The alliance is expected to report bad sales growth in the nearest future, because China’s slowing economy shows falling demand for personal computers. According to the industry experts, there will be sad stories from both companies when they report their results. However, even if they both have sinking profits, they will have to report that sales increased at least 5% from a year earlier.
Industry observers pointed out that growth has been slowing in China, which remains the world’s largest computer market, since 2012. This means that electronics manufacturers can’t anymore count on Asia to counterbalance falling demand in EU and the US. Not so good for the alliance. In the meantime, the downfall has already hurt AMD. The latter revealed that its revenue fell 11% in the 2nd quarter, due to weaknesses in China and Europe.
In addition, Applied Materials, Intel’s largest supplier, was reported to cut its annual targets a few weeks ago, citing delayed orders for its chipmaking equipment due to weaker end-market demand for semiconductors in the area.
Indeed, China is reported to have its weakest expansion in 3 years in the 2nd quarter when its economy rose by 7.6% from a year earlier. The most interesting part is that some of this is because the Chinese are dependant on orders from American and European tech firms. Today their sales slow, and so do the orders into the outsourced plants in China.
Another problem that the tech alliance faces is that financial analysts are talking doom and gloom and corporations are pulling back on spending in result. Intel knows that if it also talks about a technology meltdown this would only make matters worse. That’s why the company is expected to be upbeat when it announces its results.
The software giant Microsoft has also been suffering and missing its targets while the Windows group has missed experts’ estimates in 4 of the 6 quarters. According to the Tame Apple press, this is happening because customers have shifted to tablets which do not run OS. The others believe that it’s more likely that it is happening due to people hanging on to personal computers longer having been put off by a lackluster economic recovery in the United States as well as concerns about the debt crisis in the EU. Finally, it is no secret that people are currently putting off purchasing new personal computers until after Windows 8 is officially released. So, it’s not the best times for technology companies.
March 5th,2013Posted by:
Tuesday, March 5th, 2013
|posted by (2013-03-06 20:01:34)|
|"because China’s slowing economy shows falling demand for personal computers" what ever....the ONLY people that are actually inclined to BUY a full computer instead of a phone or a tablet pc are the ones that actually know how to use one.|
"Industry observers pointed out that growth has been slowing in China, which remains the world’s largest computer market, since 2012. This means that electronics manufacturers can’t anymore count on Asia to counterbalance falling demand in EU and the US. Not so good for the alliance. In the meantime, the downfall has already hurt AMD. The latter revealed that its revenue fell 11% in the 2nd quarter, due to weaknesses in China and Europe" so you thought that by just screwing over the US ecco that it wouldn't effect the global ecco? LOL
these BIG corporations need to go back to school and re-learn basic economics. you can't take away jobs and expect the ecco to prosper.
|posted by (2013-03-07 06:23:00)|
|i feel that somehow google did a bad job by releasing the android OS for tablets and mobiles. added to the fact that android is open source and free to use, in the long term it might as well hamper the economic growth by making sure that there is less currency inflow outflow out of corporations like msft and intel and their vendors.|
Inspite of all that, i like android more than any other OS in market.. \\google rocks//
|Android is just another Linux o/s and they have had Linux Phones for over 10 years now,because the O/S was branded by them and is an instant competitor with Microsoft as well as free from the malware/spyware of its competitors it is set to be a force to be reckoned with as are the Linux distros (Red Hat,Fedora,Ubuntu,etc which have a big niche in Asia and around the Globe,said distro`s are all open source and if you own one you will know that not only do you get a fully functional O/S with fully equipped repositories for Apps but also can download everything Linux in development across the computing spectrum with several hundred thousand applications for free across the board as well as the operating system simply by going to sourceforge.net|
|Good point you make #1 about Asian taking away US jobs. Where is the|
"made in American" Seem like just about all the US companies moving
or selling out to Asian. Wake up American, pretty soon China will buy
your soul and own you, lol. I'm from New York and the jobless and
homeless rate is going up each day and when you've white middle class
American eating in soup kitchens, you know things getting serious.
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