Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile
    • Networking
    • PC Hardware
    • Storage

    IT Forecasts Improve as Global Chip Sales Increase

    By
    Scott Ferguson
    -
    August 3, 2009
    Share
    Facebook
    Twitter
    Linkedin

      Global semiconductor sales picked up in the second quarter of 2009, as Intel reported solid financial results and the forecasts for the PC and handset markets showed new signs of life, according to a report by the Semiconductor Industry Association.

      The SIA’s Aug. 3 report found that worldwide chip sales hit $51.7 billion in the second quarter of 2009, an increase of 17 percent from the first quarter of this year when sales stood at $44.2 billion. In June, processor sales topped $17 billion, an increase of 3.7 percent from May.

      While the latest SIA report is good news for the semiconductor market, as well as a positive sign of the overall health of the global IT market, the research also shows how far the market has fallen off since the recession took hold in 2008.

      In the second quarter of 2008, global semiconductor sales topped $64 billion. For the first six months of 2009, worldwide chip sales stood at about $96 billion, a 25 percent decrease from the first six months of 2008.

      In its analysis, SIA found that chips sales were helped when companies such as Intel, Advanced Micro Devices and Texas Instruments began adjusting their processor inventories and reducing the prices of older chips.

      In addition, SIA found that with the handset and PC markets adjusting some of their previous forecasts, the market seems right for semiconductor revenue to bounce back later this year and into 2010.

      “Consensus estimates for unit sales of PCs are now in the range of minus 5 percent to flat compared to 2008, whereas earlier forecasts were projecting year-on-year unit declines of 9 to 12 percent,” SIA President George Scalise wrote in the report. “In cell phone handsets, analysts now believe the unit decline will be in the range of 7 to 9 percent compared to earlier forecasts of a decline of around 15 percent. PCs and cell phones account for nearly 60 percent of worldwide semiconductor consumption.”

      In July, the world’s leading supplier of chips for PCs and servers, Intel, reported solid second-quarter financial results and many of the company’s executives said they believe the worst of the recession is now behind the industry. However, AMD reported a slow quarter, although executives there said they believe the company and industry could bounce back later in 2009.

      Regarding the global market, SIA found that China’s economic stimulus package, along with an expanding 3G network, has helped increase hardware sales, and that provided a boost for chip sales.

      In a separate report released Aug. 3, Deutsche Bank analysts stated that the semiconductor industry, including memory makers, will have a down year in terms of revenue, but the downturn is not expected to be as severe as first thought.

      “We maintain our 2009 forecast for industry revenue to decline by 20 percent [year-over-year] but expect revenue could be down only 15 percent if the pace of recovery quickens,” Deutsche Bank wrote.

      Scott Ferguson

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×