Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Process Boy who wrote (87643)	9/2/1999 9:31:00 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 186894

These numbers are simply incredible; rising PC demand and a large jump in ASP's!!!!!!(See bolded) **************************************** July's surprise: chip sales surge after soft start to summer A service of Semiconductor Business News, CMP Media Inc. Story posted updated 3:45 p.m. EST/12:45 p.m., PST, 9/2/99 By J. Robert Lineback SAN JOSE--After stalling out in June, worldwide chip sales surged in July, growing 2.9% to $11.55 billion compared to $11.22 billion in the previous month, based on a revenues report from the Semiconductor Industry Association here today. July's month-to-month increase was the strongest this year following a slowing of chip sales growth in the second quarter. The sudden jump in global chip sales comes somewhat as a surprise after June's revenues dropped 0.6% from totals recorded in May, based on the SIA's three-month moving average. Chip sale totals have been running higher than a year ago because of last year's severe recession, but pricing competition and new battles for market share in key chip segments have eroded growth rates in the past three months, according to analysts. July, however, seems to signal a change in chip recovery that began last summer. In addition to the strong billings report from the SIA, orders for computer systems surged in July as well, according to new figures released by the U.S. Department of Commerce. "The computer orders had one of their biggest month-to-month jumps I've ever seen," observed veteran chip analyst Bill McClean, president of IC Insights Inc.** in Scottsdale, Ariz. "The Commerce Department said July was up over June by 19% in terms of dollars--$13.4 billion compared to $11.3 billion. That increase came despite the low average selling prices of PCs." Along with the jump in computer orders, several key IC markets are strengthening, said McClean, citing flash memories and microprocessors. Flash devices are now in short supply and revenues for those nonvolatile memories grew 100% in July over the same month last year--$313 million vs. $156 million, he said. Average selling prices for microprocessors jumped from $72 in June to $90 in July, McClean added. "Once Intel stopped AMD and the rest of the suppliers from competing at the low-end segment, we have started to see average prices increase and that will work into the marketplace [revenues]," McClean predicted. The new SIA global billings report certainly paints a brighter picture for chip makers than a year ago--when the 1998 recession was about at its lowest point. Compared to a year ago, July's sales were 19.3% higher than $9.68 billion in July 1998. "July's global sales continued the robust growth that began in mid-1998," observed George Scalise, president of the SIA. And compared to June, chip sales in July were up in all regions with Japan registering the strongest gains--4.2% to $2.56 billion vs. $2.46 in June, said the SIA. Europe resumed sales growth in July with an increase of 1.4% to $2.36 billion compared to $2.32 billion in June following a decline of 2.8% in the last billings report (see Aug. 5 story). The contrast between July 1998 and July 1999 was strongest in the Asian Pacific region and Japan, said the SIA. Semiconductor sales grew 29.2% in the Asia Pacific region to $2.83 billion compared to $2.19 billion in July 1998, while chip revenues in Japan were up 24.8% to $2.56 billion vs. $2.05 billion a year ago. Chip sales in the Americas were up 18.0% to $3.79 billion in July vs. $3.22 billion in the month last year, and revenues in Europe rose 6.3% to $2.36 billion compared to $2.22 billion in July 1998, according to the SIA billings report. seminews.com