Recent news out of the chip sector has boosted confidence in the technology industry, however, the mortgage and debt crisis becoming apparent in the US and Europe still have the potential to upset the market according to analysts.Peter Sutton, head of research at CLSA Asia-Pacific Markets has warned that the US sub-prime crisis will inevitably hit both corporate and personal spending and has said that high-cost luxury industries will be the hardest hit, with the PC and technology industry as a whole at risk. He however said that it is currently unclear how hard it will be hit.
He added that while worldwide sales of computers and mobile phones is and would likely remain strong in the near term, the fact that the majority of foreign markets rely heavily on exports to the US could cause a large slowdown in spending. The fear is that increased interest rates, higher amounts of foreclosures and spiralling bad debts could cause consumer spending to decline sharply at the end of this year, but stressed that the technology industry isn't showing any signs of trouble just yet.
Sutton said that by the end of this year, the sub-prime problem should become clearer with analysts being able to better analyse the risks that the PC and technology markets face in the coming months.
Advertisement
Related Stories
- Daily deals websites get the Apprentice treatment May 23rd 2012 at 9:58PM
- iPad boosts April online sales to strongest in 18 months May 22nd 2012 at 10:53AM
- Dixons reports growth in UK sales in latest statement May 10th 2012 at 9:14PM
- Better Business: Rent Negotiation May 10th 2012 at 10:43AM
- TP-Link partners with Asda May 9th 2012 at 2:46PM
- Are you selling the Connected Home? May 2nd 2012 at 12:53PM
- Clare Rayner: Climb the 10 Steps to Retail Success May 2nd 2012 at 11:43AM
- Tesco sees UK profits fall Apr 18th 2012 at 10:51AM
- Serif agrees Asda deal Apr 17th 2012 at 2:27PM
- NCsoft gives headstart to gamers who pre-purchase Guild Wars 2 Apr 12th 2012 at 9:34AM
