Gartner Says Current Chip Inventory is Way Too High
Gartner is concerned about high levels of inventory in the chip industry.
"The semiconductor industry entered the third quarter of 2011 with moderately high levels of inventory," said Gerald Van Hoy, senior research analyst at Gartner. "Current levels are too high given the weakening economic sentiment, and the industry must rein in production growth and take action to reduce accumulated inventory. We expect that these actions will occur during the next few quarters with production and sell-through expected to return roughly to balance by the second quarter of 2012."
Gartner said that the inventory correction is likely to begin in late 2011 and coincide with an already volatile economic environment in which average selling prices of semiconductors a "tracking" below trend levels.
"Excess inventory levels helped buffer the impact of the Japanese earthquake; however, now action should be taken to rationalize stock levels in the face of macroeconomic weakness," said Gartner analyst Peter Middleton.
According to Gartner, the industry will see "a moderate inventory correction during the next few quarters," which will drive overall semiconductor demand lower. On the positive side, the semiconductor inventory held by OEMs is still near historic lows and may buffer the decline in chip demand..
- Business,
- chip ,
- semiconductor ,
- manufacturing ,
- supply ,
- demand
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My name is Jimmy McMillan and i represent the "Current Chip Inventory is Too D@#M High" party.
Isn't there being a glut of inventory good for us as the consumer? I understand that if there is too much, it can indicate sales may be slowing but that can help drive prices down. ***That guy is one creepy looking sucker.....
Yeah, he looks like he's about to ask you, why it's called a Royal with cheese
the prices will definitely be going down this christmas season. hold on to your undies ladies and gents, black friday will surely pull them down!
I wish I had that guy's beard.
Why is he wearing gloves?
Why is he wearing gloves?
He is related to Dr.No!
http://www.gartner.com/AnalystBiography?authorId=13905
That is a link to a real picture of Gerald Von Hoy, the guy quoted in the article. I have no clue who that is in the picture or why their photo is in this article.
The beard is tight though.... and the gloves... very hip.
Looks like a politician; or a member of the ACLU.
http://www.gartner.com/AnalystBiography?authorId=13905
That is a link to a real picture of Gerald Von Hoy, the guy quoted in the article. I have no clue who that is in the picture or why their photo is in this article.
The beard is tight though.... and the gloves... very hip.
I think you must not have seen the first post... the picture is Jimmy McMillan of the "The Rent Is Too Damn High Party". It should be obvious from the tittle why it was chosen for its tongue in cheek comedy. One of those things, if you have to explain it its not funny anymore.
the guy in the picture is referenced in the first post. where have you guys been?
For those who don't know who this is: http://www.youtube.com/watch?v=x4o-TeMHys0
Jimmy McMillan, representative of "The Rent Is Too Damn High Party."
President 2012 perhaps?
EDIT: Aw, I lost the race. Oh well.
Isn't there being a glut of inventory good for us as the consumer? I understand that if there is too much, it can indicate sales may be slowing but that can help drive prices down. ***That guy is one creepy looking sucker.....
Good for consumer ≠good for business. Usually this is always 'bad' as it forces companies to drop margin's lower meaning less profit.
the guy in the picture is referenced in the first post. where have you guys been?
the guy in the picture is referenced in the first post. where have you guys been?
I read the post, but I still don't get why Tomshardware put the picture there. I guess its funny to them... or maybe not.
When I read the title of the story I thought of the too damn high meme and giggled when I opened the story to see the picture. Tom's audience understands web culture which is why they put it there. You need to get in more
I seen that guy in the picture on TrueTV "The worldsDumbest partyers". He was one of the cast members not a partyer (all though he may be a partyer, just caught on film yet)I thought him to be a lil strange because of the gloves also. I think it is even stranger to see him on Tom's, who is he? Gerald Van Hoy?
I googled Gerald Van Hoy looking a picture of him and got the link below. Now I think Gartner don't know one end from the other!
Sorry here is the link, i don't know why it didn't upload
The guy in the pic looks like the pastor from Obama's supposed Church.
http://www.sify.com/topics/-Gerald-Van-Hoy/1.html
the link button don't work?
Never trust a guy with a whacky beard, gloves on, and water bottles strewn all over!!!!
You should expect CPU sales to go down. Low end CPUs are far past being the bottleneck for new systems (for the average user), so people are keeping their older ones instead of upgrading.
Chip inventories are too high yet there aren't enough Bulldozers.
Way too many bulldozer chips ?? Spark chips ? ARM chips ? Potato chips?
Wonder what Gartner was actually saying.
Looks to me like they are anticipating a return back to PC's as the primary device for most users, Which does appear to be happening, By now everyone has their tablet, Everyone has their Console, Everyone has an expensive phone which they are already upgrading every time a new one is released so major sales times don't really come into that.
There are a number of reasons why any company could be holding high stock currently and I'd say now is a good time to do it with the move towards Windows Tablets and back to PC's becoming increasingly imminent.