IT industry is promising?

The IT industry covers various kinds of businesses therefore it is very difficult to describe general overview of the whole industry. Yet, as Vault predicts industry like social media represented by Facebook and Twitter are expected to continue growing at very fast pace. As for companies like Microsoft and Apple, it is expected that they will grow a little more steadily which is not that bad considering the fact that many other industries are still suffering from current economic recession. In case of Microsoft, Jim Yim analyse that it is a good buy. According to Yin, Microsoft’s core business remains solid and expected some growth in the next 12 months. However Yin mentions some legal issues about Microsoft which might cause some negative effects. As for Apple Inc, Clyde Montevirgen suggests that apple is a great choice for investments. He explains that even though Apple was affected by macroeconomic conditions, Apple’s branding and innovative products still make Apple one of the strongest companies in the industry. For example, iPhones, MacBooks and iPads are expected to be sold more and more in the next couple of years.

Stock Report | Microsoft Corp, Apple Inc

Standard & Poor's Financial Services LLC

Picture: Apple <http://www.apple.com/jp/ipad/ios4/>

Securities Markets

Analysts believe that the technology industry is an industry that is constantly evolving and to meet the demands of a society that has become more technologically dependent. New and innovative technology will be the facilitator that helps build companies—improve their efficiency—and reduce their costs of operation. Analysts are predicting slow and modest growth within the hardware technology industry. According to S&P’s Computer Hardware survey, PC shipment sales are expected to grow 8% from 2009-2014. Analysts forecast rapid growth and competition in tablets (like the Ipad tablet). The article sights significant growth in tablet sales because consumers value portability. Analysts believe that Apple stock is a great buy because of their rising shipments and sales of their Ipad 2. Their first Ipad generated 2.2 billion dollars in sales alone through April-June 2010. Another company stock that is considered a buy would have to be software giant Microsoft. Microsoft has managed to remain top dog of the packaged software industry. They control 17.67% of the market share, which is almost double to that of IBM’s market share. Microsoft also saw a 7% increase in revenue in 2010, which totaled their revenue to 62 billion dollars. (S&P 8)

STANDARD & POOR’S

Industry Surveys Computers: Hardware

IT Markets and the Recession

Of all the industries in todays market that were negatively impacted by the recession, the one that bounced back the fastest was Information Technology. Now the IT industry, like most industries had global double digit percentage drop in revenue in the 4th quarter of 2008. All nations except for Japan, which managed an increase of 4.3% had suffered decline. The worst hit areas of the world included Europe, the Middle East and Africa with more than 20% declining in each region. The semiconductor sector is not expected to make a comeback to where it once was until at least late 2012. This is based partly on the fact that the semiconductor sector didn’t make it back to where it was for four years after the dot com bubble in 2001.

Despite this gloomy outlook, the Information Technology industry has a few key things going for it. Software by and large was affected little by the recession, quick to recover, and was soon developing programs video games that were outgrossing many Hollywood movies. The hardware sector, although slower to return to revenue increases the was quick to react and make changes that the industry needed to blossom, with cheaper hardware that is easier to use for a recession consumer.

Microsoft's recovery and future

Microsoft is the largest software company in the world and they are best known for Windows OS and other office software. Since Microsoft is such a big company and their Operating system’s market share is very high, revenue remains relatively high. According stock report by STANDARD & POOR’S, total revenue in 2008 was 60,420 (Million $). As for 2009 it was 58,437, and next year was 62,484. Current problems that Microsoft has been dealing with are 1) the battle between Apple.inc regarding strategy for mobile devices 2) low sales of computers. As the world economy is still in process of recovery, consumer demand remains relatively low therefore it might take a while for Microsoft to fully recover. The most troubling thing for Microsoft would be the fact that Microsoft has been struggling to differentiate from Apple. For example, Microsoft has its own OS for mobile devices but its share in the mobile devices market is low. Apple has iPhone OS and Google has Android. Both of them have unique features and they distinguish one from another. As for Microsoft they are little behind in the race. Since Microsoft is shifting their traditional business that is making OS to other things such as mobile devices and game industry, to win the battle between Apple and other companies are very important.

Stock Report | March 26, 2011 |Microsoft Corp

Standard & Poor's Financial Services LLC

Oracle Recession Proof

Software giant, Oracle posted a 78% increase in company profits in its third fiscal quarter. This surge in profit can be largely due to Oracle’s acquisition of Sun Microsystems. The company acquired Sun Microsystems in 2009 for $7.4 billion. The Recession of ‘08-’09 made it difficult for smaller software companies to sustain the brunt of the economic hardships that many companies were facing. Larger software companies like Oracle acquired smaller software companies like Sun Microsystems during this time. Anyways, Oracle is starting to see its investment pay off. They managed to surpass last year’s profits of $1.9 billion, with $2.1 billion this third fiscal quarter. The company’s revenue is predicted to grow “9 to 13 percent, earning $10.4 billion to $10.7 billion”. The software giant believes that the increased gain in profit is also due to its 30% increase in licensing sales. I believe that many large software companies, like Oracle and Microsoft, will continue to buy up tech companies and firms in the future, as a means to increase their product diversity, and increase company profits.

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Recession Era- How has Apple fared?

Apple, like nearly all companies during the market crash of 2008, suffered a heavy loss in the stock market that resulted in a serious drop in product sales. However, ever since that dip, Apple has been growing steadily with little sign of hindrance. Possible reasons for Apples success include the popularity of its products across the world, especially by the young. Popularity abroad also helped Apple receive minimal damage from the recession. In 2008, Apples growth in the United States only amounted to about 2%, whereas internationally, the company grew a whopping 16%! Since January 2009, Apple stocks have soared from $100 each to $348 each. Apple is projected by S&P to grow even more and is still considered a strong buy.