Feeds

Chip makers ride PC and phone sales in emerging markets

2008 going well, thank you

Gartner critical capabilities for enterprise endpoint backup

Demand for PCs and mobile phones in emerging markets gave US chip makers a solid first half of the year in sales.

Growing middle-class populations in China, India, Eastern Europe and Latin America offset American economic headwinds and the plunging prices of memory, the Semiconductor Industry Association said today.

Global semiconductor sales at the first half of 2008 rose 5.4 per from the same period last year to $127.5bn. June sales increased 8 per cent year-over-year to $21.6bn.

The trade organization said PC sales accounted for about 40 per cent of chips sold worldwide. Cell phones drove about 20 per cent of demand.

"Emerging markets are a major factor in driving worldwide semiconductor sales," stated SIA president George Scalise. PC unit sales in emerging markets are expected to grow by 19 percent – more than double the growth rate in developed markets this year. In 2008, developing countries – with sales of over 153 million units - will account for half of worldwide PC sales. In mobile phones developing countries are expected to account for 66 percent of total worldwide unit sales of over 1.3 billion, up from 61 percent last year."

But sinking memory prices continue to worry the industry. SIA said total semiconductor sales in June, excluding memory products, would have grown by 12 per cent year over year.

Price drops in memory products contributed to a 6 per cent year-over-year decline in total memory sales despite "sharply" increased unit sales, the trade association said.

"Rapid price declines for microchips tend to mask the real growth of the industry," said Scalise. "The cost of 1 gigabit of DRAM has declined by 43 percent during the past year, while the price of 2 gigabits of NAND flash has declined by 61 percent in the last 12 months."

Fortunately for buyers, the lower prices equates to increased memory content in consumer devices. SIA cites the memory maker Micron, which estimates memory content of the average PC will increase at least 50 per cent this year. The average cell phone capacity will increase by more than 150 per cent.

Pardon our callousness, but these memory industry tears taste delicious from where we're standing. ®

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Apple takes blade to 13-inch MacBook Pro with Retina display
Shaves price, not screen on mid-2014 model
iPhone 6 flip tip slips in Aussie's clip: Apple's 'reversible USB' leaks
New plug not compatible with official Type-C, according to fresh rumors
The agony and ecstasy of SteamOS: WHERE ARE MY GAMES?
And yes it does need a fat HDD (or SSD, it's cool with either)
FEAST YOUR EYES: Samsung's Galaxy Alpha has an 'entirely new appearance'
Wow, it looks like nothing else on the market, for sure
YES YES YES! Apple patents mousy, pressure-sensing iVibrator
Fanbois prepare to experience the great Cupertin-O
Steve Jobs had BETTER BALLS than Atari, says Apple mouse designer
Xerox? Pff, not even in the same league as His Jobsiness
TV transport tech, part 1: From server to sofa at the touch of a button
You won't believe how much goes into today's telly tech
Apple analyst: fruity firm set to shift 75 million iPhones
We'll have some of whatever he's having please
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.