Gartner sees widespread slowdown in electronics sector

"In coming months we expect to see signs of a widespread slowdown in the electronics sector, which would directly impact semiconductor sales," said Richard Gordon, analyst at Gartner, in the market researcher's Semiconductor Monday DQ Report. He also predicts that the chip industry won't start to recover until H2/09, reports IDC News Service. The impact of the financial crisis in the USA and Europe as well as the massively increased energy prices has slowed down - and will further slow down - consumer spending considerably. PC and mobile phone sales have not yet experienced any weakening, due to the strong emerging market in China, India, Russia and South America. The market researcher lowered its 2008 global semiconductor forecast in March, citing falling memory chip prices and the weakening global economy as reason. Gartner dropped its prediction to 3.4% revenue growth (US$278.4 billion) for chips this year, compared to a previously estimated 6.2%. Gartner also warned of rising chip inventories, a problem that has not improved, reports IDC.