Even Bigger Nightmare On Tech Street

People on Twitter don't talk much about the economic crisis. Web 2.0 companies might be suffering but they don't make big news. Things are probably worse for the big players when consumer demand goes down and enterprises don't have resources for systems and software improvments.

Even Bigger Nightmare On Tech Street: "The technology sector, already rocked by the credit crunch and slowing global economies, is facing a bleak 2009, the impact of which is going to be felt across the entire ecosystem. From PC makers to chipmakers to chip equipment makers, almost everyone is bracing for a stomach-churning ride.

“The problem is three times worse than everybody thinks,” said Terry Gou, chairman of Hon Hai Precision Industry Co., a large Taiwan-based contract manufacturer. According to The Wall Street Journal, he is looking to cut jobs in his factories, most of them in mainland China.

Helge: Chinese manufacturers have been experiencing growth after growth. Is this the first time they are really facing an economic downturn of this magnitude? By the way, the same goes for everybody.

Now here is a man who should know the actual extent of the troubles. His company’s customers include Apple (AAPL), Nintendo and Hewlett Packard (HPQ). Its subsidiary, Foxconn, makes handsets for Motorola (MOT) and Nokia (NOK). Any slowdown in orders from his end customers affects his business. Closer to home in Silicon Valley, companies like Cisco Systems (CSCO), Hewlett-Packard (HWP) and Adobe (ADBE) are shutting down for the holidays to save money."