Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Wednesday, October 04, 2006

Wireless Unlikely to Help Semis Next Year

By William Trent, CFA of Stock Market Beat

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

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.

The author may hold a position in the securities discussed. A current list of the author's holdings is available here.

Powered by Blogger