As the earnings season for the tech sector begins and with some big names such as Intel Corp and Micro Devices Inc. having recently cut their sales outlook, many investors are optimistic for the final months of 2010 believing that with the bad news out of the way sales for the last part of the year will improve as consumers warily spend on holiday shopping. Experts believe that a hefty section of this spend will go toward smartphones and tablets such as the Apple iPad.
"Budgets are tighter now. People have less money to spend so they're going to spend it more carefully, where they think they get the best bang for the buck. And for a lot of them it's portable electronics," one analyst known to Milton Financials said. Companies who have less exposure to the burgeoning wireless device market are not expected to do as well. With encouraging signs of the U.S. consumer returning to shopping, large retailers are predicting their best Christmas in four years despite the high unemployment figures.
The global tablet market has seen unprecedented growth since the April launch of Apple Inc’s iPad, Milton financials research shows, with many competitors, including Dell Inc and Samsung Electronics having recently launched competing devices in the past few months. Milton Financials is a dedicated, independent broker providing the market insight and investment advice that corporate, institutional and private clients trust.