Gartner: '04 chip revenue growth strong, '05 weaker
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BOSTON - The semiconductor industry remains on track to record a significant increase in revenue during 2004, according to Gartner Inc.'s latest forecast for the year released Tuesday. After that, however, the outlook takes a turn for the worse.
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The market for personal computers will undergo ``three lean years&#39;&#39; starting in 2005, with a marked slowdown in demand, research firm Gartner said.
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InfoWorld - Sales growth for x86 servers slowed in the fourth quarter of 2006 as buyers adopted virtualization technology and waited for quad-core processors, according to a Gartner report released Thursday.
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Intel&#39;s revenue increase for the fourth quarter fell short of analysts&#39; estimates in part because of weak prices for memory chips.The company recorded revenue of $10.7 billion, up 10.5 percent year over year, missing the $10.8 billion estimated by analysts polled by Thomson Financial.Though revenue from computing-related products was as expected, NAND memory revenue was lower than expected, Intel said in a news release.The company reported net income of $2.27 billion, below analysts&#39; estimates of $2.38 billion. Earnings per share were $0.38.Intel in November rolled out its next-generation Penryn processors,&#160;which the company claims provide better power efficiency and graphics performance than its earlier chips. Manufactured using the 45-nanometer process, the company first launched Penryn chips for workstations and in early January rolled out 45-nm chips for servers, laptops, and desktops.Intel is expected to launch processors for its Montevina platform, an upgrade to its mobile Centrino platform, later this year. It will also roll out Menlow, a platform for ultramobile computers, later this year. Intel is also working on a new chip architecture code-named Nehalem, which will appear in late 2008.
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New numbers from Gartner show that computer server sales slowed in the third quarter, a trend the research company attributes to virtualization.
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The Semiconductor Industry Association now calls for almost 2% chip sales growth, as opposed to the 10% growth forecast earlier, primarily because of lower prices.
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High performance analog chipmaker National Semiconductor today lowered its revenue guidance for its fiscal Q2. The new guidance for the quarter calls for revenues to range from $445 million to $450 million
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The market for semiconductor  equipment is expected to contract by almost 10 percent in 2008  largely due to lower spending from makers of computer memory,  market research firm Gartner said in a statement on Thursday.
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Sales of semiconductors in November indicate that consumer products such as LCD (liquid crystal display) TVs, digital music players, and other devices sold well during the holidays, the Semiconductor Industry Association (SIA) said Monday.November chip sales rose 2.3 percent year-on-year to $23.1 billion, the SIA said.Unit demand has far outpaced last year. But falling chip prices have hurt industry revenue, the chip association said. For example, DRAM (dynamic RAM) bit shipments grew 25 percent in the three months through mid-December, but average selling prices have declined 20 percent over the same period.The association also noted that rising energy prices and concerns about the sub-prime lending issue in the U.S. do not appear to have had a significant impact on consumer spending for the holidays, the SIA said. The group reiterated its forecast that worldwide semiconductor sales will reach a new record in 2007. But it will take a stronger than expected December selling season to reach the 3.8 percent growth goal the group had&#160;forecast earlier this year, the SIA said.Investment banking firm Credit Suisse was not as optimistic as the SIA.The November data was below normal seasonal trends, noted analyst John Pitzer, in a report on Monday. Even if December reaches its normal seasonal growth, 2007 industry revenue will only reach $255.7 billion, up 3.2 percent over last year. The growth percentage would fall short of the SIA&#39;s 3.8 percent target.The slow November prompted Credit Suisse to lower its 2008 chip industry revenue forecast to 9.4 percent year-on-year growth, down from a previous target of 13 percent.
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September quarter was a good one, but software maker's revenue forecast for current period falls short of analysts' expectations.
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The latest Gartner figures show that both server shipments and revenue increased in Q2 as Hewlett-Packard and IBM lost market share to Sun and Dell.
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The worldwide semiconductor industry is expected to grow by 2.5 percent in 2007, lower than past expectations, said market research firm Gartner Inc.
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THE global semiconductor business slumped during the second half of the year - although overall 2004 brought a 23% increase in revenue in the industry amounting to $218bn (Â£112bn), according to analysts at researchers Gartner Dataquest yesterday.
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Semiconductor maker Advanced Micro Devices Inc.  warned on Monday that its quarterly revenue will be lower than forecast, citing softness in sales of its memory chips used in cell phones and other devices. The company's shares fell after the warning.
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Graphics chip-maker ATI Technologies   Inc ATYT.OQ said on Wednesday that fourth quarter revenue is   expected to be about $520 million, below the low end of the   revenue outlook it provided in late June.
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SAN FRANCISCO -- The number of companies building and designing microprocessors is likely to shrink by approximately 40 percent over the next 10 years, analysts from Gartner Inc. predicted at the research firm's Semiconductor Industry Summit conference here in San Francisco Tuesday.
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Agilent&#39;s (A:NYSE - news - research) fiscal fourth quarter came up light, and the company slashed first-quarter guidance. Blaming a weak chip business, the Palo Alto, Calif.