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Mobile, PC Slowdown Contributing to Decline in Semiconductors

Semiconductors are being revised downward, falling into negative territory for the first time since 2012, an indication of an ongoing decline in smart phones, tablets and traditional computing devices.

According to a new forecast from market research firm Gartner, semiconductor revenues will be off 0.8 percent for the year, for a total of $337.8 billion in 2015.

"Once again the outlook for the major applications that drive the semiconductor market, including PCs, smartphones and tablets, has been revised downward," said Andrew Norwood, research vice president at Gartner, in a prepared statement. "This, combined with the continuing impact of the strong dollar on demand in key markets outside of the U.S., has resulted in a decline in our forecast and a negative growth rate for 2015."

The stronger dollar and weakened Chinese economy have pushed electronics costs upward in some parts of the world, cutting into sales or driving consumers to purchase cheaper devices.

Gartner reported, however, that 2016 will be a stronger year, with anticipated growth of 1.9 percent.

About the Author

David Nagel is the former editorial director of 1105 Media's Education Group and editor-in-chief of THE Journal, STEAM Universe, and Spaces4Learning. A 30-year publishing veteran, Nagel has led or contributed to dozens of technology, art, marketing, media, and business publications.

He can be reached at [email protected]. You can also connect with him on LinkedIn at https://www.linkedin.com/in/davidrnagel/ .


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