TI president doubts predictions of cellular resurgence
By Darrell Dunn
EBN
(06/11/01 11:47 a.m. EST)
While some analysts have been raising their estimates for total cellular handset shipments in anticipation of a second-half resurgence in demand, the CEO of the largest supplier of ICs to the market said he has yet to see any significant improvements.
Handset shipments totaled about 415 million in 2000, and the industry-wide slump kept most analyst projections for 2001 at about 425 million to 450 million. In recent weeks, however, some market research firms have increased estimates to ashigh as 480 million to a half a billion units.
"They (the analysts) don't know. There are no hidden secrets," said Tom Engibous, president, chief executive, and chairman of Texas Instruments Inc. "It's clear to me that the economy is still decelerating. I just came back from Europe (in late May) and they are seeing similar thing now that we saw (in the U.S.) two quarters to a quarter and a half ago."
As TI enters the last month of the second quarter, IC shipments into the handset market continue to be below actual handset shipments, evidence that handset OEMs are continuing to work through existing inventory, he said.
"Shipments of cellphones are currently flat to up 15%, depending on who you are talking to, and yet we are shipping about half of what we shipped in the second quarter of last year," Engibous said. "I think that (lack of demand) is fairly broad across a wide range of communications end equipment. At some point, we will see a pick up, even with the economy as is. We'll have to see order rates reflect end-equipment build rates." |
