MediaTek has voiced concerns over the business outlook for the second quarter of 2014 due to weakening orders for chip solutions for TV, optical storage, LCD monitor and DVD applications although demand for its smartphone solutions remains strong.
In addition to a high base recorded in the first quarter, which may undermine performance for the second quarter, MediaTek is cautious that chipset demand from the smartphone sector may weaken after the May 1 holidays.
MediaTek's share prices were also set on a downward correction recently amid investor concerns that recent strong sales gains recorded by the smartphone solution vendor were actually driven by overbooking at clients, according to industry watchers.
However, MediaTek's second-quarter smartphone solution shipments will still be higher than the 65 million units shipped in the first quarter, according to an internal estimate. |