Menu
Apple's iPhone and game consoles to prop up chip industry in 2014

Apple's iPhone and game consoles to prop up chip industry in 2014

The semiconductor industry will see more incoming revenue this year after the new iPhone is released, Gartner says

Apple fans may not be the only ones waiting for a new iPhone later this year -- semiconductor industry revenue will get a boost from it too, according to Gartner.

The iPhone release will spark semiconductor demand, Gartner said in a statement. Based on growing demand for the iPhone and other hardware, the research firm is projecting semiconductor revenue to be US$336 billion this year, growing 6.7 percent compared to 2013, outpacing the previous forecast of 5.4 percent made in the first quarter.

The iPhone uses chips, memory, storage, sensors and other semiconductors that Gartner is counting in the overall revenue forecast. Beyond the iPhone, smartphone shipments are also expected to continue rising, which will drive up overall semiconductor revenue growth.

Semiconductor revenue growth is widespread, said Ranjit Atwal, research director at Gartner, in a statement. Demand for Microsoft's Xbox and Sony's PlayStation 4 are also expected to ramp up later this year, which will help drive up processor revenue.

Semiconductor revenue is measured based on production and shipment of chips for device makers, who then make products. For years, PC semiconductors were the main driver of revenue, but tablet and smartphone shipments are expected to outpace PC shipments by next year. Manufacturers like Samsung, Toshiba, Micron and SK Hynix are dedicating more capacity to making semiconductors like low-power mobile processors, NAND flash storage and LP-DDR memory for mobile devices.

The explosion in hardware shipments will benefit DRAM revenue this year, with Gartner projecting it to reach $41 billion, growing 18.8 percent from 2013, which is significant considering the sector recovered only last year after three years of revenue decline. The DRAM market is volatile due to fluctuation in pricing and supply-demand cycles. Gartner expects the next DRAM downturn in 2016.

Revenue from non-memory semiconductors, including processors, sensors and specialized chips, will grow 5.2 percent, Gartner said.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags GartnerComponents

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments