A Glass Half Full

Trying to figure out how the price of oil, rising prices, and a code orange financial sector will affect the IP communications industry is a crap shoot. Some analysts are looking towards the Aug. 7 release of Acme Packet's (downward) revised financials as being the bellwether for the rest of the industry, but I'm not so sure if I buy into that idea. If Acme, Cisco and Nortel are down, then maybe we should consider some further thought.

In (quite arguable) theory, there's some good news this week to ponder.

The good news: Intel announced a 25 percent increase in profits this week and sees continued strength going into the third quarter as its chips go into more mobile devices, with laptops now outselling desktops. Mobility desires broadband connectivity, so the wireless companies should be OK, especially with people falling all over themselves buying 3G iPhones. Going into the data center, Sun is predicting a good fourth quarter so people are still upgrading and/or adding servers at a healthy clip.

Analysts argue that consumer electronics, are relatively insulated from the ups and downs of everything going on because everyone "needs" their tech fix and prices continue to drop.

And (in theory), the higher price of oil should lead to more telecommuting as people try to cut down on their gasoline bills and avoid traveling the increasingly expensive skies. Go price plane tickets for September travel and tell me it's not a wakeup call.

So, what do you think? Time to buy some gold? Or just chill a little?

- Doug