Nonetheless, longer-term growth is expected to be healthy with worldwide
Sep 5 2013, 18:56 | includes: CY
The semiconductor sector may be worth examining due to signs of firming global growth and the backdrop of favorable expectations for electronic sales. The U.S. manufacturing PMI has posted readings in the mid-50s over the past two months, recovering from a recent low of 49.0 in May. At the same time, the August JPMorgan Global Composite Output Index rose 1.2 to 55.0, hitting a two and half year high and suggesting the growth picture is not limited to the U.S.
Smart phone and tablet demand expected to grow:
The upswing in economic growth is complemented by a favorable outlook for the sale of technology product. The International Data Corporation recently forecast that global smartphone shipments would rise 40% in 2013 to over 1.0 bln phones. Carrier subsidies and lower cost devices were expected to fuel growth. By 2017, smart phone shipments are projected to hit 1.7 bln units. However, the IDC did cut its outlook for 2013 tablet sales by about 2 mln units to 227.4 mlu. Nonetheless, longer-term growth is expected to be healthy with worldwide shipments projected at 407 mlu by 2017.