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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (39793)	5/31/2001 11:17:29 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

<The freefall in semiconductor prices has eased for now. IT equipment inventories continue to improve and aggressive clear-out pricing is no longer necessary. Nonetheless, new competitors and product categories threaten the highest margin IT products. Semiconductor pricing has stabilized as the trough in IT demand may be approaching. Current demand trends are still weak, however. Global chip sales fell in March, the seventh consecutive month of contraction. The month-to-month sequential decline is partly explained by the usual seasonal lull at the beginning of the year. After adjusting for seasonal patterns, however, chip sales still declined by 5.6% in March. Sales were 3.9% below one year ago, the first year-over-year decline in this cycle. Currently, with excess capacity now dominating the industry, price weakness will constrain global sales for several months even after demand for final products strengthens. The domestic inventory-to-sales ratio continued upward in March, rising to 1.05 months, its highest level since June 1999. >