Dark days ahead for component makers
Doom and gloom
THE CHIPS will stay down for the tech industry until at least the end of 2009, say component suppliers.
According to the Financial Times, Japanese component makers TDK, Nichicon, Kyocera and Murata Manufacturing say high-end components are staying on shelves, which is putting enormous amounts of pressure on bits and bobs like capacitors and inductors.
The worst news is for the mobile makers, but PC makers like Dell – whose shares are already taking a hearty thrashing – and consumer electronic giants like Panasonic and Sony will also be feeling the pain.
In fact, the only thing currently keeping shipment volumes from sinking like the Titanic is the incessant demand for basic products in emerging markets like India and China.
Murata has purportedly predicted a whopping 40 per cent drop in its net profits, even if it manages a 1.3 per cent rise in sales. Taiyo Yuden reckons it can expect a 44 per cent slump in net profit as well as a fall in sales. TDK is estimating its sales will stay flat, but is preparing itself for a 22 per cent drop in net income.
But despite all the doom and gloom, all the Japanese component groups say they are still optimistic about staying profitable, thanks to a “strong technology base and diversified clientele”. µ
L'Inq
Financial Times
Comments
I love this situation with solid-state drives
(Sorry, my sleeping patterns are screwed up, so my comprehension has taken a hit)I love how solid state drives are taking a hit. See, they're bad ideas for things like laptops and anything bigger than a scientific calculator, unless slimness is also a concern, which isn't necessarily the case.
The thing is, they won't always be that way. There will come a point where they really do use less power and really will start to compete with hard drives. The trick is, though there's no guarantee this trick will succeed, is to invest in the solid state drives companies when they've hit bottom and keep them for the 5-10 years it takes them to become popular. Maybe take 5% of your assets and equally distribute them across all the major companies.(maybe less than 5%, I'm far from being an expert)
It's the same reason I've invested in 200 shares of AMD. You don't want to invest in popular companies, you should invest in companies that should BECOME popular.
@Jason
Your an idiot. AMD Doesn't even make solid state drives.