CONSUMER electronics giants Sony and Panasonic have signalled that the worst of the downturn might be over, fuelling hopes that a recovery in the global technology sector will extend beyond the pre-festive-trading rush.
Both Japanese groups yesterday raised their full-year outlooks, with Panasonic posting its first profit in three quarters boosted by strong sales of advanced DVD recorders.
It follows an upbeat view from Samsung Electronics, the world's biggest LC
D maker, and rival electronics group Sharp.
Lee Hak-Moo, an analyst at Mirae Asset Securities, said: "In the global IT sector, the recovery next year will be led by sectors that suffered most this year, such as PCs. The strongest recovery will be in memory chips. LCD TVs have done well this year and its performance in 2010 won't stand out so much."
Taiwanese PC firms Acer and Quanta both issued upbeat sector outlooks, underscoring the recovery in consumer demand and boding well for peers such as Hewlett-Packard and Dell.
Globally, investors are taking heart from the US's return to economic growth, with Germany and France also on the mend. Although Sony recorded its fourth consecutive quarterly loss in the July-September period, analysts noted signs of improvement in many units of the consumer electronics conglomerate.
Kazutaka Oshima, chief executive at Rakuten Investment Management, said: "The initial impression is good. The results were lifted by an improvement in LCD TVs.
"I also feel positive about its outlook as Sony managed to narrow down its losses despite the yen's strength."
Panasonic raised its full-year operating profit forecast by 60 per cent after posting a quarterly profit of ¥49.1 billion (£327 million), well down on a year earlier but the group's first positive outcome in three quarters.
As well as robust sales of large-screen TVs and DVD recorders, the firm has enjoyed strong domestic demand for its energy-efficient fridges, boosted by government subsidies to encourage greener home appliances.
Meanwhile, South Korean heavyweight Samsung signalled bigger players were set to further widen the gap over smaller firms in a tech-sector recovery. Along with domestic rival LG Electronics, it has made a spectacular turnaround this year, grabbing market share from the likes of Sony.
There was further encouraging news yesterday from the mobile phone industry as a report pointed to growth in the crucial final quarter of the year, ending four quarters of falls.
Research firm Strategy Analytics said: "We forecast (global] handset shipments to grow 3 per cent annually in Q4 2009, signalling an end to the recession."
