Wireless Unlikely to Help Semis Next Year
A recently published industry study suggests this mobile phone sales growth will slow sharply next year.
Global cellphone sales growth set to slow -report | Technology | Internet | Reuters.co.uk
The report by London-based Informa Telecoms & Media forecast mobile handset sales rising to 943 million units in 2006 from 814.4 million last year, and crossing the 1 billion mark next year to reach 1.03 billion.”But this year is going to be the last year of double-digit growth,” David McQueen, principal analyst at Informa and one of the report’s main authors, told Reuters.
Based on estimates we have seen published this year, they aren’t exactly going out on a limb. Still, with next year soon to become “this year,” investors may pay more attention to the slowing sales pattern. And with wireless having accounted for much of the strength in semiconductors this year, the repercussions could extend beyond handset makers.
It won’t help the growing inventory, that’s for sure.
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[…] Since Linear’s major product lines include desktop computers and mobile phones, the outlook also strengthens our concerns for the overall semiconductor sector, which has seen a disproportionate share of its recent strength from the wireless handset market. That concern is not lessened by Motorola’s (MOT - Annual Report) sales shortfall, which prompted Albert Lin, analyst at American Technology Research to say, “I think the fact the company was light on sales and has 85 percent of its revenue concentrated on cell phones will plague the stock for at least the next several quarters.” […]
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