Saturday, April 25, 2009

IT-industry: Ordered to survive

HQ of AMD in Sunnyvale, CA, USA.Image via Wikipedia

Sadness and gloom. These two words were sufficient to describe the current mood of the inhabitants of Silicon Valley. Another couple of months ago it seemed that the IT-industry crisis, if not will bypass, then, at least not so badly affected as other industries. But expectations are not met. More recently, the generous funding of startups completely phased out, as large IT-companies massively reduce the staff and all the universal "restructure", ie, start saving, even at the clip and toner for printers. But this does not save.

Semiconductor Sector

In the IV quarter of 2008, the supply of a family of x86 processors fell by 18%. At the same time, as once again underscore the analysts in the I quarter of 2009 the first significant improvement is not worth waiting for. Deliveries of the family of x86 processors in monetary terms in the IV quarter of 2008 decreased by 18% compared to III quarter of that year, said the report Mercury Research. These are the processors of all commodity groups - for notebooks, desktops and servers.

The negative trend was followed immediately after the strong recovery in July-September, when revenue, compared with the same period in 2007 rose by 13%. However, as analysts emphasize that there is no prerequisite for further growth. "According to the results of I quarter 2009, sales will decrease significantly more than the 7.4% - a figure that has marked the beginning of the year", - analysts contend the company Mercury Research. It seems, in I quarter of 2009, the market will decline by 15%. In its assessment of the experts based on sales in mid-January. They understood that the microprocessor industry fully hit by the impact of global recession and financial crisis.

The market share of AMD and Via Technologies declined by 0.7% and 0.2% respectively. The percentage of Intel rose from 81.2% to 82.1%. However, we can say that if the ruler does not Atom and confident sales netbukov, the share of Intel would remain unchanged.

As a result of the whole of 2008 Intel Corporation took 80.4% of the market for x86 processors, compared with 77.1% a year earlier. The company holds leadership in the segment of x86, and semiconductor components on the market as a whole, including flash memory. The percentage of Advanced Micro Devices declined from 22,1% to 18,5, Via (for the year) increased from 0.8% to 1.1%. Compared with the 2007-meters at last year's revenue producers x86 CPU family has increased by 13,3% (all the same crisis occurred near the end of a successful year as a whole). The supply of processors for notebooks and desktops, in quantitative terms increased by 18% for servers - fell by 25%. The latter fact experts attribute the decline in the cost of new equipment and the completion of the next renewal cycle IT infrastructure companies.

Market size graphics accelerators in the IV quarter of 2008 decreased by 34%, analysts said the company Jon Peddie Research. As noted in the company, this decline is very atypical for the computer industry, traditionally a well-earned pre-sale. In total, during the last quarter of last year, has sold 72.35 million graphics cards, while in III quarter has sold 111.26 million graphics accelerators. Sales in the segment also significantly (by 28.5%) yield and performance end of 2007, when it was delivered to 100.5 million cards.

Commenting on the statistics, the president of Jon Peddie Research Jon Peddi said that the development of the situation suggests that the market is expecting the worst I and II Quarters since the collapse of dotkomov "in 2000.

The distribution of roles is as follows: the proportion of Nvidia graphics cards on the market in the last quarter was 37.9%, while the share of its nearest competitor, and the core AMD increased from 20.3% in III quarter 2008 to 21.4% in the past.

Bankruptcy chip manufacturer Qimonda has led to an increase in the cost of DRAM-memory, according to research company Gartner. In doing so, analysts forecast a rise in prices in the future.

According to the report Gartner Semiconductor DQ Monday Report, a week after news of the bankruptcy of the prices of the most popular memory of 1 GB increased by 16%. On average, the same growth in the DRAM-memory was about 8.7%. Gartner analysts predict that the rising cost of memory and in the future. In their view, the effect of the fall will affect Qimonda completely after the reaction of Asian traders were celebrating New Year's east. In the long term specialists Gartner awaiting the resumption of the downward trend in the cost of DRAM-memory.

In turn, the research company IDC predicts that the DRAM market in 2009 will decline by 12.1% to $22.84 billion last year, sales declined by 17% to $25.98 billion Restoring growth IDC experts expect only in the the second half of 2010, when, in their calculations, must come to end the global crisis and renewed demand for consumer electronics.

However, for diversity is good news. The company handed over the city AMD Malta (New York, United States) plan to construct a new factory for the production of microprocessors. According to documents filed by the company is located on the outskirts of cities and Malta Stilvoter. The production line will occupy an area of about 82 thousand square meters. m, of which 25 thousand - the "clean room". Office buildings and auxiliary construction raspolozhatsya on 39 thousand square kilometers. m.

If approved, the proposed plan of construction of the plant will start in mid-June. And it is scheduled to complete by July 2011. Despite the high cost of the project, which is estimated at $4.6 billion, AMD does not delay the venture going. The point is that the emergence of a new business is expected to enable the corporation to increase the rate of introducing new products to market and expand the range of microchips. Financial support for AMD will Advanced Technology Investment Company, established by the authorities of Abu Dhabi (United Arab Emirates). Manage the new facilities will be Foundry Company, formed through the reorganization of AMD.


In 2009, online retail sales continue to grow despite the economic downturn. The projected research company Forrester Research, by December the volume of Internet sales in the United States increased by 11% reaching $156 billion, however, a slight slowdown in growth will still occur: in 2008 the income of online shops rose by 13% on performance the previous year and reached $141 billion Share of online sales in total income of U.S. retailers will be 7% compared to 6% in 2008.

Forrester Research Specialists are confident that this year more and more American consumers will prefer shopping in online stores, since the Internet allows you to easily compare prices among retailers and find the desired product. Net profit of American company, owns the world's largest online store, for 2008 grew by 36% to $645 million against profit of $473 million from a year earlier. Such information is contained in the recently distributed the financial report the company. Sales in 2008 increased by 29% and reached $19.2 billion against a similar figure of $14.9 billion recorded in 2007. Profit for the company's results of operations in 2008 increased by 28% - from $655 million to $842 million

The growth of the company's financial indicators is due primarily to growth in sales in the electronics segment, as well as profit from the new customer service company.


The company Sharp and Sony decided to postpone the launch of a joint venture for the production and sale of LCD products. As noted in the two companies, the reason for the delay are the changes in the global economy. Thus, the joint venture, the opening of which was previously scheduled for this year, starting no earlier than March 2010 st. Let me remind you that it planned to establish on the basis of a new factory in western Japan's Sharp, whose construction has already begun. The company noted that the transfer of launch joint venture will not affect the construction schedule of the plant: as planned, he will begin production in March 2010 on.

The world's largest electronics manufacturer Panasonic Corp. close the 2008-2009 fiscal year ending in March 2009 on, with a net loss of $3.9 billion this would be the biggest loss of the last six years. The reason for such serious financial loss was a sharp decline in demand for electronics as a result of the global economic crisis.

Meanwhile, the company refused to comment on this information. Previously, it was reported that in November 2008, the company lowered profit forecast for the 2008-2009 fiscal year by 90% - up to $326 million instead of the previous forecast of $3.37 billion sales forecast for the current fiscal year was reduced to $89.5 billion against $96.8 billion, projected earlier.

The American Corporation SanDisk, which specializes in the production of media based on flash memory, announced the results of activity in the IV quarter and the year 2008 as a whole, which the company has been unprofitable. From October through December by SanDisk to gain about $864 million This is a 31% lower than for the IV quarter of 2007. Net loss SanDisk last quarter reached $1.86 billion, or $8.25 per share converted. This year, according to analysts SanDisk, will be rather difficult. Since the publication of financial reports SanDisk shares fell in price by about 17% - to $9.45.

Public sector

The British Government over the next five years to spend on IT-projects of 102.3 billion pounds. At the same time, eight major projects will cost taxpayers in the 18.6 billion pounds. Please note that the projects are already overdue for a few years, because of the cost of some of them grew up in a few times, and spending on IT in general just went out of control.

Thus, the program will translate into a digital form of all medical records in the country, which will enable 30 of thousands of officials to receive data from the three hospitals, requires 12.7 billion pounds sterling. Four years ago, its budget was only 2.3 billion pounds sterling. Computerization of the tax system for tax and the Royal Customs Service initially estimated at 2.9 billion pounds, but now stands at 8.5 billion project for database connection, the Ministry of Defense has been allocated 5.8 billion pounds, but this amount was later increased to 7 1 billion

Many British (and only) company to work on increasing IT-spending hundreds of millions of pounds, and some, on the contrary, because of the constant delays, the contract with the Government. In particular, Fujitsu in May 2008, ceased to operate with the authorities in the UK. Now requires a 600 million pounds, as officials were forced to alter product 650 times (!) At no extra cost.

Mobile Devices

Mobile industry still sums up the past year. Company LG 2008 on the results of the first rose from fifth to third place among the largest manufacturers of mobile phones in the world, overtaking Motorola and Sony Ericsson. The market share of Korean companies in 2008 increased by 1.5% to 8.3% mainly due to certain sales in North America. Company Sony Ericsson has lost 0.7%, and Motorola - 5,1% of its shares in 2007, with this LG sold in the past year, 100 million phones, overtaking Motorola only 100 thousand tubes.

Nokia and Samsung added to 1.8% and 2.7% respectively. According to the results of 2008, Nokia took 38.6% of the world market of mobile phones, and Samsung - 16,2%. Overall, in 2008, has sold 1.21 billion cell phones - on 5,4% more than in 2007 By comparison, in 2007, growth was 16%. The company Motorola has continued steep peak. Its net loss in 2008 increased almost 85 times - up to $4.16 billion against $49 million received in 2007 on the basis of such data contained in the latest record company. In doing so, Motorola earnings fell by 18% to $30.15 billion (in 2007 - $36.62 billion). Operating losses in 2008-m increased fourfold and reached $2.39 billion

The company reported that during the economic crisis is actively working on a program to reduce costs. (I've already lost the account, which is in their savings program.) It was expected that after the implementation of the company will save $1.5 billion already this year.

I recall that in March 2008 on Motorola announced the intention to split into two separate companies - for the production of mobile phones and to provide broadband and mobile business solutions. In the case of obtaining the necessary approvals from the supervisory bodies of the division of the company will be held this year.

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