Electronics Industry in early recovery

Uncertainty regarding growth is still prevalent

The recovery is under way for the electronic equipment industry; however, much uncertainty continues to rest on the macroeconomic recovery and the effectiveness of government stimulus packages, especially when that stimulus runs out, according to Gartner.

As a result, Gartner does not expect a sustainable recovery pattern until 2010, and associated semiconductor sales are not expected to regain 2007 peak levels until 2012.

“Almost all sectors of the electronic equipment market have now hit bottom and await signs of ‘first growth’ in comparison with the same quarter last year,” said Klaus Rinnen, managing vice president at Gartner’s semiconductor manufacturing group. “The first signs of growth will be led by seasonal buying patterns in the PC market during the third quarter of 2009, although other major sectors will not begin to show first growth, year-on-year, until 2010.”

“Electronics vendors and their suppliers must give careful attention to the expected recovery pattern of each sector, and a separate response must be planned for each,” said Jim Tully, vice president and distinguished analyst at Gartner. “In particular, new product introductions should be synchronized with the expected sequence of the recovery.”