AMSTERDAM (AFP) - Dutch electronics giant Royal Philips Electronics NV said it had lowered its outlook for semiconductor sales in the third quarter, as had been widely expected by analysts.
Whereas Philips previously forecast 3-4 percent sequential growth in dollars, the group now expects chip sales to come in flat versus the previous quarter.
The outlook excludes mobile display systems, which also form part of Philips' semiconductor division.
"We expect third quarter sales in US dollars to be 27 percent up on sales of the third quarter last year and sequential sales growth to be flat," said Scott McGregor, CEO of Philips Semiconductors, in a statement.
"We'll continue focusing on the measures we believe help enhance our competitiveness in shifting market conditions."
Philips also reported that demand for "connected consumer" applications -- those that enable consumers to access and share content easily -- was expected to exceed general demand for semiconductors.