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

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments