With the news of the continued downturn in PC sales, one might think that computer chip manufacturers could be in for tough times ahead. However, despite the stagnation of the PC market, most computer chip makers are still showing positive growth. Early last year, many industry experts predicted that the market for computer chips would fall as the tech industry as a whole slowed down and consumers keep their computers for longer than ever before. As the year came to a close, however, an entirely different picture was painted for chip manufacturers everywhere.
Positive Growth Despite Falling PC Sales
While PC makers such as Dell and HP are struggling in a flat market for PC sales, the manufacturers of their processors are still experiencing a boom in sales. Industry body World Semiconductor Trade Statistics said it expected world chip markets to grow 9 percent in 2014 to $333 billion. This represents impressive and somewhat surprising growth compared to earlier opinions at the beginning of the year.
Mobile Technology
PC sales may be in a slump, but mobile markets are still on the rise. More and more consumers and businesses are adopting the use of smartphones and tablets powered by mobile processors. Chipmakers have seen a surge in orders for these chips from mobile phone makers and tablet manufacturers, boosting overall sales tremendously.
Smart Cars
Perhaps the biggest influence on last year’s growth in chip sales is smart cars. The vehicular technology is changing; cars are now able to better monitor road conditions and warn you when there is a problem. This evolution is powered by computer chips with the ability to process the information they receive quickly and then alerting you to any potential problems. As more car manufacturers begin to include these chips to make their cars smarter, the demand will only continue to rise.
The Internet of Things
While not a significant contributor to revenues in 2014, more and more manufacturers are adding connectivity to a wide range of devices that you wouldn't normally expect. With these increasingly smart devices that are able to communicate with you via your smartphone or computer over Wi-Fi, chipmakers expect a sustained model of growth and sales for the industry.
Future Outlook
Chipmakers are still cautious despite this good news, but experts predict strong demand over the next two years. Experts anticipate the chip market to rise 3.4 percent in 2015 to $345 billion and 3.1 percent to $355 billion in 2016. This growth is significantly less than the 9 percent experienced in 2014 but is still a strong and stable forecast welcomed by chip manufacturers all over the world.
PC makers may still worry about their long-term profits with their market grinding to a halt as more and more users adopt other devices for their daily computing needs. However, sales of computer chips remain strong and are expected to remain that way in the near future.
