Disappointing sales of higher-end smartphones might have a negative impact on Siliconware Precision Industries' (SPIL) sales performance during the second half of 2013, according to market sources.
Suppliers of ICs for use in smartphones, particularly high-end models, are holding unpackaged chips due to a slowdown in end-market demand, the sources indicated. SPIL will likely report lower-than-expected revenues for the third quarter as its mobile-chip customers delay orders, the sources said.
In addition, inventory levels are rising in China's smartphone market, and concerns have been raised among related chip suppliers about customers' overbooking or double ordering, the sources observed.
Due to those negative factors, SPIL could post only flat or single-digit revenue growth sequentially in the third quarter, the sources said.
Previous reports quoted market watchers as saying that SPIL is expected to report sales growth of 10-15% sequentially for the third quarter, driven by strong orders for mobile chips.
SPIL is scheduled to hold its quarterly investors meeting on July 31 to discuss its business outlook for the second half of 2013. |