At the height of the COVID-19 pandemic, many tech companies saw record profits and acquisitions as people shut down. However, the end of the epidemic and the lifting of restrictions caused the great rise to result in a sharp decline. Today, the Wall Street Journal, which brings together the recent statements of technology companies, shared a new report that proves the problems in the market.AMD, Intel and Qualcomm lower their expectations
According to the shared report, Micron said that the company’s current stock of chips is “well above targets” and that there has been a loss of about 10 percent in its overall workforce due to the sharp drop in demand. HP’s CEO, Enrique Lores, stated that these problems will begin to subside soon, but that they will affect the industry at least in the next two quarters.
AMD and Intel, the leading names in the PC market, also made similar statements. “It’s hard to see any good news on the horizon,” as Intel CEO Pat Gelsinger said in October, as the company saw a 15 percent decline in sales and a 59 percent decline in overall profit compared to the same period last year.
May affect prices
AMD Lisa Su, on the other hand, thinks that Ryzen 7000 processors fall short of expectations in ready-made desktop or laptop systems. Because users who want to switch to Ryzen 7000 processors have to turn to the new AM5 motherboard and DDR5 memory. While this situation causes a decrease in user demands, the company continues to turn to new price reductions.
The problems experienced in the sector also affect the smartphone market. Qualcomm, one of the leading chip manufacturers for phones, has been among the names that have lowered its expectations recently due to the decrease in demand for high-end smartphones.
In the light of the shared information, we can say that technology companies will have to find new ways to overcome this sudden drop in user demands. However, in addition to all these setbacks, many executives think that with the move of production to the US market, chip sales will double by 2030 and exceed $ 1 trillion.
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