This quarterly global snapshot of activity in the technology sector highlights trends, business challenges and opportunities. In this edition we review the second calendar quarter of 2015.
The technology sector posted positive year-over-year growth of 3% in Q2 2015, but declined 0.9% quarter over quarter. Services remained the growth driver as most companies experienced sharp declines in product revenue. Additionally, the global software market is experiencing an influx of new vendors in the Internet of Things (IoT) space.
Significant transformational activities continued for tech companies in the second quarter with company announcements of strategic acquisitions, write-offs and impairments related to suboptimal assets, and restructuring of operations.
Economically the quarter was marked by contrasts. The US continued to record slow economic improvement but Chinese stocks, which were thought to be overvalued, headed for a price correction on June 12. These events were strongly reflected in the Volatility Index, which shed 15% from 15.11 in mid-April to reach 12.85 by mid-June, but then rapidly climbed to end June at 18.23 as there were growing signs that China’s economy was slowing at a sharper pace than expected.