It seems that the situation in the market changed within recent years and the reality is starting to bite in China, with such giants as Intel and Microsoft suffering.

The alliance is expected to report bad sales growth in the nearest future, because China’s slowing economy shows falling demand for personal computers. According to the industry experts, there will be sad stories from both companies when they report their results. However, even if they both have sinking profits, they will have to report that sales increased at least 5% from a year earlier.

Industry observers pointed out that growth has been slowing in China, which remains the world’s largest computer market, since 2012. This means that electronics manufacturers can’t anymore count on Asia to counterbalance falling demand in EU and the US. Not so good for the alliance. In the meantime, the downfall has already hurt AMD. The latter revealed that its revenue fell 11% in the 2nd quarter, due to weaknesses in China and Europe.

In addition, Applied Materials, Intel’s largest supplier, was reported to cut its annual targets a few weeks ago, citing delayed orders for its chipmaking equipment due to weaker end-market demand for semiconductors in the area.

Indeed, China is reported to have its weakest expansion in 3 years in the 2nd quarter when its economy rose by 7.6% from a year earlier. The most interesting part is that some of this is because the Chinese are dependant on orders from American and European tech firms. Today their sales slow, and so do the orders into the outsourced plants in China.

Another problem that the tech alliance faces is that financial analysts are talking doom and gloom and corporations are pulling back on spending in result. Intel knows that if it also talks about a technology meltdown this would only make matters worse. That’s why the company is expected to be upbeat when it announces its results.

The software giant Microsoft has also been suffering and missing its targets while the Windows group has missed experts’ estimates in 4 of the 6 quarters. According to the Tame Apple press, this is happening because customers have shifted to tablets which do not run OS. The others believe that it’s more likely that it is happening due to people hanging on to personal computers longer having been put off by a lackluster economic recovery in the United States as well as concerns about the debt crisis in the EU. Finally, it is no secret that people are currently putting off purchasing new personal computers until after Windows 8 is officially released. So, it’s not the best times for technology companies.