The U.S. technology market is one of the strongest in the world. Big companies like Cisco and Applied Materials are leaders in networking, chips, and advanced technology. But their latest earnings reports show a clear problem: the consumer tech market is slowing down.
This is an important signal, because when companies like Cisco and Applied Materials struggle, it affects the entire global technology industry.
Who Are Cisco and Applied Materials?
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Cisco Systems – Cisco is one of the biggest networking companies in the world. It makes routers, switches, and cybersecurity tools. Almost every big business and government office uses Cisco’s technology.
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Applied Materials – Applied Materials is a leader in making equipment for semiconductor manufacturing. The chips inside your phone, computer, and even cars are made with tools created by Applied Materials.
These two companies are often seen as “health indicators” of the tech industry. If they grow, the tech sector is usually doing well. If they slow down, it means problems are coming.
What the Earnings Reports Show
The most recent earnings reports revealed:
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Cisco’s earnings dropped slightly, with slower sales in consumer and enterprise products.
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Applied Materials had weaker-than-expected growth, especially in semiconductor equipment orders.
Both companies said demand for consumer technology, like smartphones, laptops, and home devices, is weaker than last year.
Why Is the Consumer Tech Market Slowing?
There are several reasons for this slowdown:
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Global Economy Pressure – Inflation and high interest rates make people spend less on new gadgets.
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Longer Device Lifespan – Consumers are using phones and laptops for more years before upgrading.
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Semiconductor Supply Chain Issues – The chip industry is facing ups and downs, causing delays in new product launches.
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Competition – Cheaper tech from countries like China is making it harder for U.S. companies to sell products at higher prices.
Impact on Cisco
For Cisco, the slowdown means businesses are spending less on network upgrades. Some companies are delaying projects like cloud expansion and cybersecurity upgrades.
Still, Cisco is trying to move forward by focusing more on:
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Cybersecurity solutions
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Artificial Intelligence (AI) networking
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Subscription-based services
Impact on Applied Materials
Applied Materials is deeply connected to the semiconductor industry. When chip makers reduce investment, Applied Materials feels the impact quickly.
Right now, the consumer electronics slowdown is reducing demand for chips. But there is still strong demand in other areas, like:
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AI chips
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Automotive chips
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Data center semiconductors
So, while consumer gadgets are slowing down, Applied Materials is betting on AI and cloud computing to grow again.
What Experts Say
Financial experts say the slowdown is temporary. While consumers may be buying fewer phones or laptops, AI, cloud, and electric vehicles (EVs) are new areas of growth.
For example:
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Reuters reports that AI chip demand is expected to grow strongly in 2025 and beyond.
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CNBC highlights how Cisco is focusing on cybersecurity as a new growth engine.
Global Tech Market Outlook
Even though consumer tech is slowing down, the global tech market is not shrinking. Instead, it is shifting focus.
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AI technology is growing fast.
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Data centers are investing in advanced chips.
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5G networks continue to expand worldwide.
This means companies like Cisco and Applied Materials may recover in the next 1–2 years as these new markets expand.
Final Thoughts
The earnings from Cisco and Applied Materials show that the consumer tech market is facing a slowdown.
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For Cisco, it means less demand for network hardware but new chances in AI and cybersecurity.
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For Applied Materials, it means fewer chip orders for smartphones and laptops, but big growth in AI and automotive chips.
The message is clear: while consumer gadgets are slowing, the future of technology is still strong—just moving in a new direction.
Companies that adapt quickly to AI, cloud, and next-generation industries will continue to succeed.