Taiwan's leading integrated circuit designers announced on Tuesday that they have reached record in the third quarter. Analyst believe that the rise in sales for MediaTek is due to the demand for smartphone chips. According to MediaTek, the company grossed NT$57.47 billion, which is US$1.89 billion state side. MediaTek reached these new sales figures during July-September quarter. They have managed to up their sales by 6.16 percent. What's really great about the new sales figures from Mediatek is numbers are in range with their previously estimated amounts of NT$56.8 billion and NT$61.2 billion.
Analyst have said that shipments of 4G LTE chips have been the secured source of orders by many companies such as U.K.-based supplier Vodafone and Chinese brands TCL and Lenovo. MediaTek's biggest source of income comes from making chips. In the second quarter, smartphone chips accounted for 55-60 percent of the company's total revenue. This time for the third quarter, it wasn't just smartphone chips that racked in the big bucks, MediaTek's revenue benefited from the demand of chips for digital TVs and optical storage use during the three-month period. One small downside to MediaTek's record high sales were back in September. The company's sales fell 5.65 percent from August to NT$18.55 billion. This was the lowest level in a single month since June, in which they reported sales of NT$15.71 billion. The reason for the decline was due to customers slowing down inventory build-ups for China's Oct. 1 National Day holiday, which is the country's peak shopping seasons.
With record high sales figures, Mediatek's stock fell 2.25%, leaving the company to close out at NT$455.50 in Taipei. The selling of MediaTek's shares comes from the month-on-month decline back in September. On another note, analyst believe that the demand for smartphones in China will remain strong as the country develops 4G telecom services. The new 4G telecom services should boost Mediatek's sales even more. Increased sales in China will make up for the slow month that Mediatek experienced in September.