September 5, 2016
Taiwan-based chip designer, MediaTek, today raised its estimate for third quarter sales growth to 22-25% because of high demand for handsets in emerging markets.
This is a significant jump from the previous estimated sales growth of 8-10%, with profit flatlining.
A statement released by the company said ‘better-than-expected’ mobile phone sales in emerging markets during July and August had caused its clients to increase September orders for cellphone chips.
Demand for mobile phones in China has been particularly strong, with 45% of the Chinese population now owning a mobile handset.
MediaTek is Taiwan’s biggest chip designer.
The company designs microchips for mobile handsets, DVD players, and digital televisions, then contracts out the manufacture of the chips to chip makers.