SAN JOSE, Calif. (AP) — Worldwide semiconductor sales rose 5 percent in October compared to the same month last year, the Semiconductor Industry Association said Monday.
Sales rose to $23.1 billion from $22 billion.
The association said year-to-date sales of $210.5 billion are on pace with its forecast of a 3.8 percent worldwide sales growth in 2007.
SIA president George Scalise said consumers are reaping huge benefits from rapid price drops in key semiconductor market sectors. He noted that revenues of microchips used in flash drives and memory cards, known as DRAM, increased only 4 percent over 2006 year-to-date sales, despite a 55 percent increase in shipments.
Scalise said the story is similar in the microprocessor segment, with a 15 percent year-to-date increase in unit sales, while revenue is up only 4 percent.
Scalise added that today's typical computer costs less than a third of one a decade ago but is 100 times more powerful because of advances in semiconductor technology.
He noted that JPMorgan increased its outlook on year-on-year personal computer sales to 13.5 percent from 11 or 12 percent. JPMorgan predicted that personal computer sales in both Asia-Pacific and the rest of the world will surpass U.S sales this year, Scalise said.
Scalise also said U.S retailers reported strong sales of electronics on Black Friday, the day following Thanksgiving that traditionally marks the highest volume sales day for retailers annually.