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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (21871)	8/2/2002 1:50:09 PM
From: Frederick Langford	Read Replies (1) \| Respond to of 26752

June Semiconductor Global Sales Flat, Europe Weak Fri Aug 2,10:12 AM ET SAN JOSE, Calif. (Reuters) - European semiconductor sales fell 4 percent in June compared with May, as overall chip sales around the globe were flat, month-to-month, the U.S.-based Semiconductor Industry Association said on Friday. The shake-out and restructuring of telecommunication markets, in addition to a slow recovery in the personal computer market, caused what the Silicon Valley-based trade group described as a short-term decline in European sales. Still, European sales in June dropped to $2.14 billion, or 14.3 percent from the $2.50 billion compared with June of 2001. In response, brokerage Morgan Stanley said it was cutting its global 2003 revenue growth forecast from the 20 percent to 25 percent growth it had previously expected. The new forecast was not immediately available. In June, the SIA had issued a global revenue growth forecast to 23.2 percent for 2003. Putting a brave face on the data, the trade group said that for three months ended June, global chip sales rose 5.8 percent to $11.35 billion in the June quarter from $10.73 during the March quarter. "While computer and computer-related sector demand is lagging, wireless and consumer sectors continue to strengthen, SIA President, George Scalise said in a statement. Relative strength in mobile phones and consumer electronics drove strong, double-digit growth in sales during the latest quarter of flash memory, digital signal processors, application specific products, discretes and analog, it said. Worldwide sales slid 0.2 percent overall in June versus May. Sales declined 1.6 percent compared with June of 2001. Japan stood out from the rest of the world by posting growth of 5.4 percent in June versus May, driven by strength in digital consumer products such as cameras. Flat-growth in Asia-Pacific, the electronics manufacturing workshop of the world, reflected weakness in overall demand for global demand, offset by the on-going shift by North American and European manufacturers to Asia, especially China, for computer boards and finished boxes. Year-to-year, Asia-Pacific chip sales have risen 29.5 percent, despite a two-year slump in overall global industry sales. Sales in the Americas fell 2.4 percent in June over May, hurt by the slow recovery in personal computer markets , The figures are compiled by the World Semiconductor Trade Statistics (WSTS) organization, which represents about 66 major chip production companies.