Chris Cantell Discusses Technologies: Technology hit by crisis by Claudia Sonea

You probably remember how I used to praise the technology branch of economy as being the last one standing firm in the chaos created by the crisis. Well, although I still haven’t changed my beliefs, there are reasons for me to reconsider my current position. According to recent reports the demand for computers and other electronics is slowing down.
Here is how the situation presents itself at the end of September: computer and electronics manufacturers did not grow their work forces, telecommunications fired 3400 employees, while software companies hired 85000 people. The toll is not that negative I would say, but I am no expert, thus I might be wrong. Besides the problem with the job cutting, there is also the decline in stock prices of some of the most famous corporations like Google Inc that had a significant loss of 24 percent, IBM Corp lost 8 percent and with it the myth that together with HP is the safest investment, and Sun Microsystems Inc., data storage provider EMC Corp. and Xerox Corp. are to follow them as the companies have just lowered earnings estimates. The electronics manufacturing service providers have also reported weaker-than-expected sales.
Analysts consider this to be only the beginning of the effects of the weak consumer spending that the technology sector will endure. To sum up, U.S. employers cut more than 159,000 jobs in September, and the tech branch is expected to start cutting jobs too. However, taking into account that the computer is indispensable nowadays for work or even for surfing the net for opportunities, there are few chances for the consumer to lose interest in to it and it is the same for cell phones. Of course there will be a minor set back as the crisis is very serious, but everything will be fixed in its due time.


related story: http://news.yahoo.com/s/ap/20081003/ap_on_hi_te/economy_technology;_ylt=AsVVUfSxdYxghM.hky474pus0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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