SIA: Chip sales up modestly in October

The Semiconductor Industry Association http://www.sia-online.org (SIA) reported today that worldwide sales of semiconductors in October rose 5 percent year-over-year to $23.1 billion, from $22 billion in October 2006 and were 2 percent higher than $22.6 billion

in September http://www.edn.com/article/CA6495103.html.  Year to date sales totaled $210.5 billion, which is 3.9 percent above the same period last year, when sales reached $202.6 billion. The SIA pointed out that year-to-date sales are on pace with the its forecast of 3.8 percent growth in worldwide sales for the year.

SIA president George Scalise explained that consumers are reaping benefits from continued rapid price attrition in key sectors of the semiconductor market, and despite a 55 percent year-to-date increase in unit shipments, DRAM revenues are up only 4 percent over January through October 2006 sales.

“The story is similar in the microprocessor segment,” Scalise said in a statement. “Strong unit demand for PCs has driven a 15 percent increase in unit sales of microprocessors for the first 10 months of 2007 compared to the same period of 2006. Revenues, however, are up only 4 percent compared to last year due to price attrition. Today’s typical personal computer costs less than a third of the typical unit of a decade ago but is 100 times more powerful due to continuing advances in semiconductor technology that have driven down costs while significantly enhancing the speed, capacity, and performance of the chips that go into PCs.”

Q3 PC sales were stronger than expected, the SIA also pointed out, which led JPMorgan to increase its forecast of growth in unit sales for the year from 11 to 12 percent to at least 13.5 percent, and point out that the PC market is undergoing significant shifts in geographic demand.

In 2006, the U.S. led all regions in PC unit purchases, according to JPMorgan, which is now forecasting that both the Asia-Pacific region and the Rest of World region will pass the U.S. in PC unit sales this year.

Scalise also pointed out that early reports from U.S. retailers on “Black Friday” – the day following Thanksgiving that typically is the highest-volume sales day for retailers – reported strong sales of consumer electronic products such as GPS systems, computers, Mp3 players, and electronic games.

“We will be closely watching consumer sales of electronic products through the holiday season. At this point, it does not appear that reported declines in consumer confidence or other concerns have affected sales of electronic products,” he added.

EDN Managing Editor Suzanne Deffree personally hit the large consumer electronics stores on Black Friday. For her take, click here http://www.edn.com/blog/690000269/post/980017898.html.

Worldwide Semiconductor Revenues Source: Business Wire