Consumer-Oriented IT companies May Be Hit Hardest

By Chris Preimesberger  |  Posted 2008-09-30 Print this article Print

Some IT companies may have seen this coming.

"As this train wreck has been rolling along, we saw some early impacts in companies that had pretty heavy exposure in the financial services and banking industries," Charles King, principal analyst with Pund-IT, told me.

"Sun [Microsystems] got slammed, not only for the last quarter, but included some cautionary language about the financial sector [in its quarterly report] earlier this year. That's a company that has a lot of traditional customers in the banking sector," King said.

The worry that most IT companies have, as credit continues to contract, is that the effects are going to ripple out into other industries because they have customers everywhere, King said.

"As the lack of credit impacts the IT business in general, there's a general belief that it's going to sock companies that are heavily invested in the consumer market," King said. "Apple probably stands as the poster child [of consumer IT success]. People are going to say, 'Boy, it'd be great to get that new 16GB iPod, but my 4-gig works pretty darn well.'"

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel