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MediaTek sales hit new quarterly high

MediaTek sales hit new quarterly high

Taipei, Oct. 7 (CNA) MediaTek Inc., one of Taiwan's leading integrated circuit designers, said Tuesday it had record sales in the third quarter, which analysts attributed largely to solid demand for smartphone chips. MediaTek posted NT$57.47 billion (US$1.89 billion) in consolidated sales in the July-September quarter, up 6.16 percent from a quarter earlier. The figure was within the IC designer's previously estimated range of between NT$56.8 billion and NT$61.2 billion. Analysts said shipments of smartphone chips for fourth-generation long term evolution (4G LTE) network use, in particular, appeared solid as the IC designer secured orders from several vendors, such as U.K.-based supplier Vodafone and Chinese brands TCL and Lenovo. Smartphone chips are the biggest source of MediaTek's sales, accounting for 55-60 percent of the company's total revenue in the second quarter. In addition to smartphone chips, analysts said MediaTek benefited from an increase in orders in chips for tablet computers, digital TVs and optical storage use during the three-month period. In September alone, however, MediaTek's consolidated sales fell 5.65 percent from August to NT$18.55 billion, the lowest level in a single month since June, when it reported sales of NT$15.71 billion. Analysts said the month-on-month sales decline was due in part to MediaTek customers slowing down inventory build-ups ahead of China's Oct. 1 National Day holiday, one of its peak shopping seasons.
Though MediaTek posted a record high in sales for the third quarter, the stock fell 2.25 percent to close at NT$455.50 in Taipei on Tuesday amid a weak outlook for the broader market as foreign investors continue to cut their holdings in Taiwan's market, they said. The selling of MediaTek shares also reflected the month-on-month decline in the IC designer's sales in September, analysts said. They believed demand for smartphones in China will remain strong in the fourth quarter as China gears up to develop its 4G telecom services, which could continue to boost MediaTek's shipments. Strong sales in China could offset the negative impact of slow season effects in the October-December quarter, analysts said. (By Jackson Chang and Frances Huang)


Updated : 2021-07-25 11:11 GMT+08:00