Menu
Semiconductor forecast lowers as PC, smartphones and tablets stutter

Semiconductor forecast lowers as PC, smartphones and tablets stutter

“The outlook for the major applications that drive the semiconductor market, including PCs, smartphones, and tablets, have all been revised downward."

Worldwide semiconductor revenue is forecast to reach $US348 billion in 2015, a 2.2 per cent increase from 2014, but down from the previous quarter's forecast of 4.0 per cent growth, according to Gartner.

“The outlook for the major applications that drive the semiconductor market, including PCs, smartphones, and tablets, have all been revised downward,” says Jon Erensen, research director, Gartner.

“This, combined with the impact of the strong dollar on demand in key markets, has resulted in a lower semiconductor forecast for 2015.

“The typical second-quarter bounce did not materialise this year, and as a result, the semiconductor industry is more back-end loaded and dependent on a strong third-quarter rebound, driven by Windows 10 and the ramp-up to the holiday season.”

From an application point of view, smartphones and solid-state drives (SSDs) will continue to drive semiconductor market growth, while the traditional PC segment will experience the greatest decline, with production units down 8.7 per cent in 2015, slightly weaker than the previous quarter's forecast.

“Inventory in the PC market remains high despite vendors looking to clear the supply chain in anticipation of Windows 10 and Intel's Skylake products,” Erensen said.

“Any issues with the launches of Windows 10 or Skylake in the third quarter of 2015, which are expected to reinvigorate PC sales, could lead to further decline.”

In the smartphone market, Apple's iPhone is the bright spot for the market with strong unit growth and increasing average selling prices (ASPs), driven by the strong performance of the iPhone 6 and iPhone 6 Plus.

However, lacklustre performance in high-end Android smartphones and general softness in the smartphone market in China will continue to impact growth.

Although the wearables market, including smartwatches, head-mounted displays (HMDs), smart glasses and Bluetooth headsets, is a growing industry, revenue for wearables semiconductors - processing, sensing and communications chips - will represent only 1 per cent of total semiconductor revenue by 2019.

Smartwatches are the top semiconductor growth in the near term.

From a device point of view, DRAM continues to be one of the primary growth drivers of the overall industry.

DRAM revenue is expected to increase 3.8 per cent in 2015, following a 32 per cent increase in 2014.

However, Gartner expects an oversupply (or "under-demand") to develop in 2016 as limited new capacity comes online and technology migration continues.

DRAM industry revenue is expected to decline 17.4 per cent in 2016 and 7 per cent in 2017.

“The typical second-quarter bounce did not materialise this year, and as a result, the semiconductor industry is more back-end loaded and dependent on a strong third-quarter rebound, driven by Windows 10 and the ramp-up to the holiday season,” Erensen adds.


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 GartnersmartphonePCsemiconductorTablet

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments