A recent development in the semiconductor market is leading analysts to foresee a big season ahead for mobile device and PC vendors.
Research firm IHS noted that inventory levels among semiconductor device manufacturers dropped in the early months of 2013. The company said that while revenues declined slightly following normal seasonal patterns, the number of devices on hand with the manufacturers who purchase semiconductors suggests that mobile handset, tablet and PC vendors are gearing up for a big sales push in the back to school and holiday shopping seasons.
Photo Credit: v3.co.ukAnalysts noted that the drop in semiconductor stockpiles combined with growing levels of inventory further down the supply chain indicate that more devices are being built and set to ship to retailers in the coming months.
Because semiconductor vendors directly supply the companies that build devices, trends in the market can serve as an early predictor for how the PC and mobile device markets will be faring in subsequent months.
Earlier this year, researchers warned that semiconductor vendors were seeing their inventories grow to worryingly high levels amidst weak interest. Through a combination of better supply management and an brighter economic outlook amidst vendors, chipmakers have been able to move their stock. READ MORE
Photo Credit: CNBCDeclining PC sales in recent years have spurred a long-drawn semiconductor slump, but analysts are now turning positive on the industry amid a pickup in other segments.