A Dry Spell For The Technology Industry

Between a shaky global economy and diminishing demand for personal computers, hardware and software, investors in the tech industry are preparing for a wave of diminishing returns on account of weak earnings reports among companies in this field.

Facebook has announced that its revenue growth slowed down in the second quarter of 2012 and Yahoo’s performance has been affected by the firing of CEO Scott Thompson for lying on his resume. Projections for E-Bay also seem grim, as Macquarie Equities analyst Ben Schachter speculates that the decreasing value of the euro may affect E-Bay’s PayPal payments business plan.

The personal computer sector has also been affected. Hewlett-Packard, IBM and Dell have experienced a decreasing number of consumers opting for tablet computers instead of more traditional laptop and desktop models, and fewer corporations and government agencies have been eager to sign off on multimillion-dollar contracts with these companies to supply PCs, servers, data storage equipment and software. Component manufacturers such as Advanced Micro Devices, Seagate Technologies and Applied Materials each have given warnings that their sales figures would be lower than projected, with AMD in particular citing economic troubles in Europe and China and the reduced demand for personal computers.

However, despite the projected downturn, analysts say that the figures are not as bad as those reported in 2008. In addition, multi-national enterprise software manufacturer SAP reported that its second-quarter earnings jumped up eighteen per cent from 2011. Because SAP, headquartered in Germany, sells to companies worldwide, many investors and analysts were relieved by the company’s reports.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

NextSpace – A unique convergence of art, tech, creativity and innovation workspaces

NextSpace is a community of freelancer, independent professionals, remote workers, and entrepreneurs who seek to work in their own terms. The community helps each member to grow, develop new skills, and work harder. Members come...

Living and working in Playa Vista, California

Playa Vista is an urban district situated west of Los Angeles. It’s home to business establishments specializing in technology, media and entertainment. From early 1940’s to mid 1980’s, Playa Vista was the HQ of Hughes...

WeWork, a beautiful collaborative workspaces for startups around the world

WeWork is a real estate company that lends office spaces for freelancers, contractual workers, small businesses, remote teams, service providers, non-profit organizations, and occasionally, even to large companies with back offices. Aside from work spaces,...

Venice Ale House, a casual gastropub with over 30 craft beers on tap

Venice Ale House, a casual gastro pub specializes in organic American food and craft beers. It is located at the Venice Beach boardwalk so you can see the amazing views of the ocean and watch...

Circle Bar is the oldest and most legendary bar in Santa Monica

This bar is characterized by its oval shaped bar at the center of the room. Circle Bar, the oldest and most legendary bar in Santa Monica, serving drinks to Jim Morrison and Truman Capote to...