View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Networks
April 23, 2015

Why semiconductor market needs to wait for Windows 10 and Intel Skylake in 2015

Gartner predicts $354bn in sales this year.

By CBR Staff Writer

This year’s Q2 will be the critical season for the PC and ultramobile semiconductor market this year, with launch of Windows 10 and Intel’s Skylake products.

In a market forecast analyst Gartner said it expects growth in semiconductor market to decline by 5.4% from the previous quarter, but increase by 4% to $354bn from 2014.

The growth will be slowed by currency shifts, excess inventory and an end to the PC upgrade cycle.

System suppliers are expected to increase prices in Europe to keep their margins high due to a strong dollar, while buyers will cut down their purchases by extending product life cycles and buying down the price curve.

The demand for PC replacements due to the end of support for Windows XP, which drove sales in 2014, will not be witnessed this year as consumers delay migrating to Windows 10.

The 2015 market will be driven by smartphones, solid-state drives and ultramobiles, while the traditional PC segment will experience the greatest decline.

Gartner research vice-president Bryan Lewis said: "2015 semiconductor growth hinges on the strength of the second-quarter bounce.

Content from our partners
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester
Infosecurity Europe 2024: Rethink the power of infosecurity

"The second quarter is traditionally where we see strong sequential growth coming off the traditionally negative first quarter as inventory is burned off from the holidays.

"First quarter 2015 looks to have the worst sequential growth since 2009 with at least a 7 percent decline, so a strong second-quarter bounce is needed to achieve the 4 percent annual growth predicted for 2015."

DRAM (dynamic random-access memory) will continue to be one of the main growth drivers of the industry.

Gartner expects DRAM revenue to increase by 7.9% this year, but decline by 20.2% and 8.4% in 2016 and 2017 respectively.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU