I find it very concerning that three companies have downgraded sales expectation.
@eemom, I share your concerns. I just wonder what will these downgrades eventually lead to ? Will it result in further job cuts, or hiring freeze , or pay cut no body knows for sure. I think everyone is eagerly waiting for year-end sales season. If we dont see spike in the consumer spending then it means things are not yet stabilised.
Just saw the news article that Poverty level has reached an all time high since 1996. Median income is now at ~50k. I guess people are now one man household because it seems salary should be higher for a specific position due to inflation.
WIth this kind of news, people will be more reluctant to spend money. Hence demand will not go up.
I am also seeing softness in the IC market and wish I had better visibility of when things will pick up. I wonder how the TI-Natsemi acquisition might also be affecting things?
I personally believe chip makers will be impacted by people preferences. In a recent past we would say producers were in condition to influence market quite indipendently from people thoughts. As of today it seems we are assisting to the reverse condition: people make the market. That said, there is potentially the possibility chipset from PC or Notebook won't be required as in the past and demands for mobile chipset will grow a lot. If we consider when I was young, TI was famous and leader for personal calculator, it is quite easy to understand possible scenario in the near future.
It seems like most of the electronics supply chain is feeling the crunch. Even Apple isn't doing what was originally forecasted. With the global economic instability rearing its ugly head again, many consumers and businesses are cutting back spending. This is being felt throughout the supply chain. Even though TI downgraded their expectations along with many other companies, it does appear that they are still going to end up in the black. Many investors and board members need to realize that while they might not of made as much money, they are still running in the positive. And that is much better than running in the red and wondering how they are going to survive.
Thanks for the article Barbara. I find it very concerning that three companies have downgraded sales expectation. I wonder if this is just an inventory correction or if it speaks to a potential weaker holiday buying season? If it is the later then it represents issues with our economy which has been slow to recover. It seems like every time we expect turnaround and recovery, the market takes a hit for one reason or another and consumers get gun shy yet again.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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