DOW JONES NEWSWIRES
Revenue generated by third-party electronics makers is expected
to fall 9.9% this year, according to market researcher iSuppli, far
worse than its prior view and signaling the slump in
consumer-electronic spending is expected to persist.
ISuppli analyst Adam Pick noted the change from the 2.2% drop
anticipated in November is its third "significant" cut in two years
as "the recessionary ripple has compounded the pre-existing
conditions that already pressured" the electronics-manufacturing
space.
"Looking forward, it's not pretty," Pick added. "Stalwarts of
the electronics marketplace - including leading brands,
manufacturers and component suppliers - have issued lackluster
guidance," or in the case of Sanmina-SCI Corp. (SANM), no guidance
at all.
He anticipates the industry's compound annual revenue increase
to be just 1.3% from 2006 through 2012. ISuppli's prior view was
5.3% growth.
This year's revenue from global contract manufacturing in the
electronics industry is expected to be $270.8 billion, down from
2008's $300.7 million.
The iSuppli report comes a day after the firm slashed its 2009
sales forecast for dynamic random access memory, which has been
subject to slumping prices along with slowing demand. ISuppli now
sees a 15% revenue drop in global DRAM sales this year, compared
with the 4% decline projected last month.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com