Tech Recovery Slow in Coming, Intel CEO Says
DUBAI — The information technology industry is experiencing the deepest recession in three decades because the world’s developed economies slowed at the same time, said Craig Barrett, chief executive of Intel Corp.
“It’s probably the most dramatic recession I’ve seen for the last 30 years for the high-technology industry” as the economies of the U.S., Japan and Europe have slowed simultaneously, Barrett said at a news conference in Dubai. Santa Clara, Calif.-based Intel is the world’s largest maker of computer chips.
Too much earlier investment in the telecommunications industry and bankruptcies among dot-com companies also are contributing to what will be the longest-lasting recession since 1974, Barrett said.
Intel chopped $200 million off the top of its earlier third-quarter sales forecast Sept. 5 as demand for microprocessors declined. Sales will be $6.3 billion to $6.7 billion, President Paul Otellini said. Intel in July predicted sales of $6.3 billion to $6.9 billion. The company had sales of $6.55 billion in the year-ago quarter.
Sales are unlikely to climb until well after economic growth in developed countries accelerates, Barrett said.
“I expect us to be at the tail end of the recovery when it happens.”
Only when consumer demand boosts company profits will those firms then invest in more high-technology products, Barrett said.
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