Published in News

Tech shares are falling



Not a safe pair of hands any more


Technology shares in Intel, Microsoft and IBM were once considered to be a safe bet. However the cocaine nose jobs of Wall Street have emerged from their corporate toilets spouting that the end is near and the big names of technology such as Intel, IBM, and Microsoft are not "safe" anymore.

It makes some sense. We have seen profit warnings from AMD, Applied Materials and Informatica and it is unlikely that Intel, Microsoft and IBM can do any better. Part of the problem is that few analysts have predicted the kind of slowdown like the one we are going to see in the second half of the year. Top name Samsung has seen its shares fall by more than a fifth since May and analysts have been slashing their estimates for LG too.

Brokers have been downgrading their outlooks for Lenovo and it is best not to talk about Sony and Panasonic. Only Apple is doing well at the moment. It has seen a four percent rise lately and it is expected to do well once it can get its new iPhone 5 out and the latest iPad hits Chinese stores on 20 July. Of course that is nothing to do with business, more just faith.

IBM, Intel, Microsoft and VMware are suffering mostly because companies have been cutting back on their IT budgets. This is causing weaker demand in Europe and China and is making chipmakers delay or cancel equipment orders. The only real hope is that Microsoft's launch of Windows 8 will kickstart the industry and share prices will rise again.

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