After seeing its May sales met expectations, MediaTek said sequential growth is expected in June and second-quarter sales should grow on a quarterly basis as forecast previously.

Weak white-box handset sales in May are expected as some China-based companies held long holidays during the May 1 Labor Day period but handset promotions during the holidays did not spur a large increase in sales, MediaTek said. The company observed that some China-based handset customers started clearing inventory from mid May.

Projecting sales prospects in June, MediaTek said booked orders have already exceeded those in May, and that demand from China-based customers is warming up, partly as they prepare inventory for the upcoming Beijing 2008 Olympics. MediaTek estimated that its June sales should post a mild growth on month. The company reiterated that its sales guidance of a 15% sequential sales growth in the second quarter remains unchanged.

Source:DIGITIMES