Nokia, world’s largest cellphone maker, predicts global handset sales will fall in 2009. Intel, the world’s largest chip maker, warns that year-over-year sales in the fourth quarter could fall 19%.
Cisco (CSCO) noted a 9% fall in October sales compared with same month last year. They also predict revenue could plummet as much as 10% this quarter, compared to Wall Streets expectations of 7% growth.
But, it is noted that the tech industry is in much better condition compared to greater Wall Street. Tech companies are flush with cash and it is likely that some of the loose change will go toward acquiring struggling competitors.
Two tech ETFs affected by the slowdown include:
- Technology Select Sector SPDR (XLK): down 45.7% year-to-date with holdings of 4.8% in INTC, 6.9% in CSCO
- iShares Dow Jones U.S. Technology (IYW): down 46.8% year-to-date with holdings of 6.3% in INTC, 7.9% in CSCO