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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GartnerComponents

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.‚Äč

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments