Tech sector

Selling volume is as usual but profits decreases, why? Cyclical woes The inventory hangover since the 2006 4st quarter is the culprit. PC makers usually stock up on chips to meet the high demand during holiday season. So they ordering fewer chips on First quarter. This cause demand to drop and price right along with it. What made this year special? Transition into Windows Vista and the rollout of new machines and new OS from Apples. It might increase the demand of 2nd or 3rd of the year. Today information technology companies, MSF and Cisco, lead the advance. They are early mover.