- that truly is very very good news - in particular note the semicustom chips supply conditions thing (they will worsen) and the inventory thing (build or maintain with no reductions) - usually when you see big aberrations like that it is a sign of an inflexion point. (LSI would theoretically be in the semicustom chips area - your XLNX definitely is in this category.)
Sounds like good news. However, I thought it was interesting that while they expect semicustom chip supply to go down and demand to be up or steady, they also expect prices to fall or remain steady. Supply down, demand up, prices down. Whatever happened to the basic principles of economics?
My feeling based on conference calls and earnings reports is that, at least in the PC space, the inventory correction is behind us, so we should see increasing unit volumes, but that the severe pricing pressure will continue for the near term. That view is not especially promising, but I think maybe I could still reconcile it with the Business Barometer report and say that nothing's really changed yet. However, you are familiar with the history of the report and have a better feel for its import and what the change of sentiment really means.
Regards,
G.P. |
