The Channel logo

News

By | Tony Smith 3rd May 2005 10:10

World chip sales continue to rise

Slow but steady gains

The world's electronics manufacturers spent $18.4bn on semiconductor products during March, 2.2 per cent more than they did in February, the US Semiconductor Industry Association (SIA) said yesterday.

For the first calendar quarter, sales reached $55.3bn, just 0.4 per cent sequentially - Q4 2004's total was $55.1bn - though they were up 13.2 per cent year on year from $48.9bn. Sales in March alone were up 14.7 per cent year on year.

The year's first quarter is usually a weak one, but stronger-than-expected consumer spending helped lift sales to the levels the SIA reported. The organisation pointed to "higher-than-expected sales of wireless handsets, personal computers and consumer electronics... despite reports of declining consumer confidence".

Q2's sales will be flat or slightly up compared to Q1's total, the SIA forecasts. It has yet to publish a revised forecast for the year's sales as a whole, but it continues to believe past predictions of flat 2005 sales are "overly cautious".

With market watchers like iSuppli forecasting the resolution of the industry's inventory glut during Q2, the scene is set for bigger sequential gains come Q3 and beyond.

That said, others, such as Advanced Forecasting, claim Q3 will similarly show only a very small improvement over Q2. The double-digit year-on-year gain seen in Q1 "will not be long lasting", it said. ®

Related stories

Intel snatches mobile graphics lead from ATI
World chip glut halved in Q1
Elpida declares first annual profit
Freescale earnings grow post-restructure
Intel rides mobile express to strong Q1
Samsung sales, income slump
Memory woes color AMD's Q1 red

alert Send corrections

Opinion

Neil McAllister

Claims that cloud will drive Oracle's future growth ring hollow
Pure Storage array

Neil McAllister

How the cloud taught Redmond to play by a new set of rules

Features

Pebble Steel
Meet the man who accidentally created the smartwatch hype
No, silly... he was the fall guy for years of Finnish folly
Fraud image