Electronics industry into economic crisis?

- Jul 11, 2017-

The global economic downturn as well as a number of technology industry giant reported earnings figures poor , both of which there is a direct relationship between the . From the observation of Amazon, Apple (Apple), Google, Intel (Intel), IBM, Texas Instruments (TI) and STMicroelectronics (STMicroelectronics) and other companies in the third quarter and fourth quarter earnings forecast , the inevitable conclusion will be ─ ─ electronics industry is sustained by consumers , businesses and government agencies for electronic products and the impact of weak demand for IT equipment .

Even Apple has spared. The consumer electronics business has always been legendary earnings report released by the company's expectations not only superior to their own , even beyond Wall Street or market forecasts. 

Even beyond the control of the industry , the impact of the current for the electronics company more pronounced than in the past . The industry is still trying to get used or even to accept it . Business, consumer and government spending constraints, the overall impact on sales performance .

Industry watchers generally poor performance in the third quarter, as the case is unusual and should soon be able to spend . But I think for manufacturers , this means that it is a longer-term trend . The global economy is not alone there, many places will continue to lag behind demand and growth , squeezing sales and the impact on resource allocation decisions .

Within a few months , Chinese politicians had worried about the economy from overheating, into a downturn in demand for employment and wage growth may be inhibited and panic. Many China watchers said, because Europe into a serious financial crisis, decline in demand for products produced in China , is China's impact.

Therefore, the electronic product manufacturers will find it more difficult to predict the next season , or even next year 's market conditions and needs. Fortunately , many companies have taken various measures to cope with sluggish market growth for the business. They are more closely monitoring requirements , inventory control and the use of time (JIT) program. Despite the weak sales , but these measures have helped to increase profits for the enterprise .

Due to the expected slowdown in market demand , many companies are cautious investment and spending , and quickly cut costs. They also create a more flexible , more intelligent and more small-scale labor system ; employees can at any time in response to changes in market conditions or reduced side additions . As the economy becomes blurred irregular crystal ball , in the next quarter , will require more workarounds and action.