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Semiconductor Market Declines for 2nd Year Consecutively


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For the only the second time in the history of Semiconductors, the industry is expected to experience two consecutive years of decline in revenues. According to James Hines who is a research director at Gartner, the industry is expected to decline at a 0.6 percent clip in 2016 and the market is desperate for the next in demand driver to emerge and consequently become the tide that lifts all boats so to speak. The worldwide semiconductor revenue figures for 2016 is forecasted to generate a total of $333 billion which is a slight decrease of 0.6 percent from 2015.

This follows on the heel of an even more dramatic 2.3 percent drop in 2015 from 2014 due to trend of weakened demand for key electronic equipment. The lower demands is exacerbated by elevated inventory levels and the continuing impact of the dollar fluctuation in key regions around the world. The sharp drop in demand for semiconductors in 2016 can be traced directly to the lowered estimations for production in regards to PCs, smartphones and ultramobiles. With no ground-breaking or in-demand driver set to emerge in the near future, relief for the semiconductor market to offset the reduction in demands is nowhere in sight. The Internet of Things (IoT) and wearable electronics could resuscitate a fading market but these devices are still in the infancy stages of dearly development.

They will then have to pass through a lengthy testing phase to get rid of all the bugs and design flaws, after which a lengthy quality period is follows and finally culminating in a costly marketing phase before the semiconductor industry start seeing any type of significant impact on the overall revenue growth. The Internet of Things or IoT can be classified as a network of physical objects whether they be devices, vehicles, buildings or even accessories that are embedded with electronics, sensors/software with network connectivity. They are becoming increasingly complex and with the features and applications they provide makes them high-value commodities. The Term was first coined by Kevin Ashton while working at Auto-ID Labs back in 1999 and initially referred to a global network of objects connected by radio-frequency identification or RFID.

Here at ASAP Distribution, we have a dedicated and expansive array of IoT products. We are your one-stop shop and go destination for a simplified sourcing solution. ASAP will ensure that our consumers’ needs are addressed in the most expeditious and transparent manner all the while offering cost-effective component solutions therefore improving your negotiation power and profit margins. If you are interested in a quote, please don’t hesitate to contact our friendly sales staff at http://www.asap-distribution.com  call us at toll free at 1-714-705-4780.


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