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By | Joe Fay 4th December 2007 11:36

Less cash for more chips

Consumers gorge on silicon

Sales of PCs and other silicon-heavy goodies helped chip sales climb in October, but vendors are seeing less revenue per part due to continuing price attrition.

The Semiconductor Industry Association says worldwide chip sales were up 5 per cent year on year to $23.1bn. This was a two per cent advance on the previous month.

The figures were enough for the organisation to say that “it does not appear that reported declines in consumer confidence or other concerns have affected sales of consumer products”.

For the year to date sales stand at $210.5bn, up 3.9 per cent on the previous year. The SIA had predicted a growth rate of 3.8 per cent for the full year.

The figures show how consumers are getting more copper and silicon for their money than ever before. The organisation noted that demand for PCs meant microprocessor shipments were up 15 per cent in the first ten months, while revenues were up just four per cent. DRAM shipments were up 55 per cent, with revenues up only four per cent also.

The organisation also flagged up stronger than expected PC sales in the third quarter, saying that JP Morgan had upped its PC unit sales forecast for the year from 11-12 per cent to 13.5 per cent. ®

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