Falling Computer Chip Prices

Recently, there was a massive price drop in computer chips. A common question is how these large drops will affect businesses in the surrounding industry. It's been a bad decade for computer chip makers. That's not to say there have been no gains - Intel's profits have steadily climbed during the decade, and AMD has made some money in recent years. But the industry, as a whole, is facing lower prices–leading to a big earnings miss for industry leaders, and slower growth.

What Does It Mean When the Price Falls?

The falling price of computer chips is a sign of the cycle in capital-intensive businesses, as they look to make up for losses by cutting costs and laying off employees. The price of computer chips fell more than 70% over the past decade, and this is happening for a reason.

Continued price drops of computer chips indicate that we are entering a cycle where capital-intensive businesses are becoming increasingly difficult to maintain. This is because technology is changing so quickly, and new players are constantly coming up with new ways to do things better and cheaper.

It is not just computer chips that are showing this trend; it is also happening in other industries, like cars and airplanes, which are seeing similar price drops as they become more automated.

The falling price of the computer chip means that companies in which "capital intensive" processes are important will see their profits decline. That's bad news for investors.

Why Is the Price Falling and What It Means?

·         The cost of producing chips has dropped steadily, so manufacturers are able to lower their prices without taking a hit on their profits. This means that consumers have more money in their pockets, which they can put toward other purchases. It also means that companies who need to buy new computers are facing lower prices than they would have otherwise.

 ·         There is more competition in the industry, which means manufacturers are more competitive with each other. In addition, there is more innovation happening in design and production techniques.

 ·      Lastly, the advancement of technology.

Founded in 1994, Creative Programs and Systems provides professional results for all computer needs. We design, create, and code an array of custom software programs and websites; offer top-notch digital marketing services including enhanced Search Engine Optimization (SEO) and paid advertising; repair and provide support for computers of both residential and professional nature; build custom systems and servers, and offer secure data backups. Need assistance or want to learn more? Call us at 810-224-5252 or e-mail info@cpsmi.com.

Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/

 

Google and Oracle Forced to Close due to Heatwave

 

Technology giants Google and Oracle suffered major power outages after massive heatwaves hit much of the United Kingdom, forcing cooling systems at London data centers to shut down. 

Data centers hold thousands of computers and are the foundation behind hundreds of online services. Since so many computers are processing, a massive amount of heat is generated; therefore, cooling is absolutely necessary. 

Oracle, a huge American database software and technology company, reported overheating issues by stating, “Following unnecessary high temperatures in the UK south (London) region, two cooler units in the data center experienced a failure when they were required to operate above their design limits. As a result, temperatures in the data center began to climb, which caused some systems to shut down as a protective measure.” 

The heatwave was also detrimental for the Google Cloud data center in London. They reported, “There has been a cooling-related failure in one of our buildings.” To prevent damage, machines were shut down, so only a small number of customers were affected. 

Since the data centers are incredibly valuable to customers, they are constructed with plenty of cooling capacity and back-ups. Typically, these large-scale failures do not take place. However, the unprecedented temperatures were a surprise for many. 

Paul Hone of Redcentric, which operates data centers in London, Reading, and Cambridge, said that data centers are designed to withstand hot weather, but the “heatwave’s temperatures would be at the upper end of design expectations for a lot of data center operators.”

Companies such as Microsoft are putting data centers underwater as an experiment to measure reliability and operation. With future data centers potentially being plunged into the ocean, the chances of heat waves affecting them will be minimal. 

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Founded in 1994, Creative Programs and Systems provides professional results for all computer needs. We design, create, and code an array of custom software programs and websites; offer top-notch digital marketing services including enhanced Search Engine Optimization (SEO) and paid advertising; repair and provide support for computers of both residential and professional nature; build custom systems and servers, and offer secure data backups. Need assistance or want to learn more? Call us at 810-224-5252 or e-mail info@cpsmi.com.

Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/ 

 

Clarifying the Worldwide Computer Chip Shortage

 Game consoles, graphics cards, processors, and so much more have been hard to come by lately. The consumer technology industry has suffered a shortage of computer chips, which has impacted the entire global supply. The chip drought has resulted in issues through hundreds of markets such as automotive, cryptocurrency, smartphone, vehicle, television, and a multitude of other technological advancements. 

Samsung CEO DJ Koh forecasted “A serious imbalance in supply and demand of chips.” 

Limited supply, combined with huge demand, created the chip shortage of 2021. During the 2020 COVID-19 pandemic, at-home entertainment boomed. Working from home caused laptop sales to reach their highest in decades. Cryptocurrency started booming, resulting in high demand for a multitude of high-end processors. 

Though gadgets and other technological handhelds have felt the impact first-hand, the automotive industry has been credited with igniting the shortage. In the beginning of the pandemic, automakers ceased orders for processors, anticipating a drop in sales. However, this decision was premature, and vehicle sales rebounded almost immediately. To compensate for the discrepancy, the automotive market attempted to buy back manufacturing, but it was too late. Other sectors were also pushing more production due to high demand. With a maxed-out production capacity, both markets were competing for chip assembly.

Gigantic technology companies such as Microsoft, Sony, Nvida, AMD, Apple, Qualcomm, and more do not actually produce their own processors. TSMC and Samsung build a majority of the world’s cutting-edge semiconductors. Intel is a unicorn in the market, as it manufactures its own processors and has not experienced shortages like its competitors. 

Trying to catch up with production is not as easy as it sounds. Extending production lines can drag on for months, and constructing new facilities can take years, not to mention cost billions of dollars. 

Forecasts show that chip shortages will continue throughout 2022. According to Xiaomi company president Want Xiang said, “The chip supply crunch is still challenging, but the situation will significantly improve in the second quarter, and such supply woes will be fundamentally solved and even revert in the second half of 2022.” 

Founded in 1994, Creative Programs and Systems provides professional results for all computer needs. We design, create, and code an array of custom software programs and websites; offer top-notch digital marketing services including enhanced Search Engine Optimization (SEO) and paid advertising; repair and provide support for computers of both residential and professional nature; build custom systems and servers, and offer secure data backups. Need assistance or want to learn more? Call us at 810-224-5252 or e-mail info@cpsmi.com.

Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/

The Next Computer Screen Could Be in Contacts

 

Imagine living in the past, around 1900, wondering what the world would be like in 100 years. Technology, electronics, computers, and cell phones were far from being even remotely possible. 

Now, imagine the future: where you can see words, numbers, and other information flowing across your screen - except no one else can see that screen - it’s visible only to you since it’s in your eye.

Too far-fetched? On the contrary. Smart contact lenses will soon be a part of our reality; you’ll be able to do much more than you’ve ever imagined.

Steve Sinclair of Mojo Vision said, “Imagine…you’re a musician with your lyrics, or your chords, in front of your eyes. Or you’re an athlete, and you have your biometrics and your distance and other information that you need.” 

Mojo Vision is on the cutting edge of implementing smart contact lenses in humans. These “screens” within contacts will exhibit a heads-up display that will seemingly float in the user’s eyes. A tiny microLED display, smart sensors, and solid-state batteries will comprise the smart lenses. 

Sinclair said, “We’ve built what we call a feature-complete prototype that actually works and can be worn - we’re soon going to be testing that internally. Now comes the interesting part, where we start to make optimizations for performance and power and wear it for longer periods of time to prove that we can wear it all day.” 

At Columbia University, Rebecca Rojas, instructor of optometric science, says smart lenses could “include the ability to self-monitor and track intraocular pressure, or glucose. They can also provide extended-release drug-delivery options, which is beneficial in diagnosis and treatment plans. It’s exciting to see how far technology has come, and the potential it offers to improve other patients’ lives.” 

Mojo’s product testing has shown that smart lenses can be worn all day without a single battery recharge. Similar to our smartphones, actual battery life will depend on how often the smart lens is used.

Rojas said, “Any type of contact lens can pose a risk to eye health, if not properly cared for or not fitted properly. Just like any other medical device, we need to make sure the patients’ health is the priority, and whatever device used has benefits that outweigh the risk. I’m concerned about non-compliance, or poor lens hygiene and over-wear. These can lead to further complications like irritation, inflammation, infections, or risks to eye health.” 

Mojo’s smart lenses are expected to last for roughly a year, but he clarified that they could be programmed to detect whether they are being cleaned enough or need replacing. 

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Founded in 1994, Creative Programs and Systems provides professional results for all computer needs. We design, create, and code an array of custom software programs and websites; offer top-notch digital marketing services including enhanced Search Engine Optimization (SEO) and paid advertising; repair and provide support for computers of both residential and professional nature; build custom systems and servers, and offer secure data backups. Need assistance or want to learn more? Call us at 810-224-5252 or e-mail info@cpsmi.com.

Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/