Semiconductor revenue forecast gets a trim
Mounting inventories, slowing consumer demand nick expectations, iSuppli says
Computerworld - Despite what had been growing excitement about the semiconductor market this year, one research company is lowering its chip revenue forecast for 2010.
The 2010 global semiconductor revenue forecast today was trimmed back slightly from a previous expectation of 35.1% to 32%, according to iSuppli Corp., which blames slowing consumer demand and rising inventories for the slip.
"There has been a significant slowdown in the second half in consumer demand for some electronic devices, including PCs," said Dale Ford, senior vice president at iSuppli, in a statement. "Meanwhile, inventories have been building throughout the semiconductor supply chain. These factors will conspire to cause a small sequential decline in semiconductor revenue in the fourth quarter."
In May, iSuppli reported that the global chip industry had not only been on a significant upswing since earlier this year, but that it was poised to see its highest growth in the past decade.
That news came a few months after industry research firm IDC announced that the chip market was making its way back after the turbulent times of the recession.
However, these prospects were all based on the burgeoning PC market. This past June, iSuppli reported that global PC shipments experienced record growth in the first quarter of this year. Driven by strong sales in Asian markets, the worldwide PC market grew by 22.7% during that quarter.
Today, though, iSuppli notes those PC sales aren't experiencing the upswing that they were earlier this year. And while that lowered outlook is making semiconductor expectations slide back, this year will still show great growth in the market. Semiconductor sales for mobile PCs, including tablets, are expected to rise by 38.6%. The second-strongest growth area is wireless communications, such as smartphones, which is expected to rise by 30%, iSuppli said.
"Despite the reduced outlook, 2010 still will be a year of impressive growth and record-setting revenue for the semiconductor industry," iSuppli reported. "Revenue in 2010 will rise by about $74 billion compared to 2009 and will be almost $28 billion higher than 2007, the previous last peak year for semiconductor revenue. iSuppli now expects that revenue in the fourth quarter will decline by 0.3% compared to the third quarter."
ISuppli also said that largely because of this fourth-quarter dip, worldwide semiconductor revenue in the second half of 2010 will rise by 7.8%, compared to 10.7% in the first half of the year.
Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin or subscribe to Sharon's RSS feed . Her e-mail address is email@example.com.
Read more about Hardware in Computerworld's Hardware Topic Center.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- 4 Customers who never have to refresh their PCs again This paper illustrates a common theme: the combination of desktop virtualization and thin client computing helps organizations deliver an up-to-date user experience more...
- Mobile Devices: The New Thin Clients Get essential guidance for understanding the role thin clients plus virtual desktops play in the enterprise today.
- Taking Windows Mobile on Any Device Taking Windows applications mobile has many advantages, but the process of identifying a solution is complex. Learn how to solve this complex problem...
- PaaS - Powering a New Era of Business IT Why PaaS has suddenly become relevant and irresistible to many organizations. Dive into the opportunities and considerations associated with using PaaS from an...
- Redefine Your IT Operations: Remote Office IT Has Never Been Simpler Join us to see why PC Pro named Dell PowerEdge VRTX the "2013 Server of the Year." PowerEdge VRTX may be just what...
- Webinar: Building a Big Data solution that's production-ready Big data solutions are no longer just a nice-to-have. All Hardware White Papers | Webcasts