Tech Sector Braces for Pain as Quarterly Results Roll Out
Today marks the beginning of third-quarter earning season for the technology industry, with Intel releasing its latest financial figures and giving investors an indication of the potential pain that lies ahead.
Third-quarter results may not be too far off-target, some analysts say, because product sales were already on the books before the financial turmoil of the past few weeks went into full swing.
But companies in every sector are bracing for a rough fourth quarter as consumer spending is expected to plummet. Many device and gadget makers depend on holiday sales to round out their annual results. They probably won't be able to count on that this year.
Yesterday, market research firm Gartner cut its forecast for corporate tech spending in 2009 to 2.3% growth, rather than its previous estimate of a 5.8% increase.
Europe will experience a spending decline next year, while spending on technology in the U.S. and Japan will be flat, Gartner said.
October 14, 2008; 10:47 AM ET
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