PC processors buck soft chip sales -

Figures from the WSTS show that although many categories of chip sales fell in June, CPU sales remained strong.

The soft spot was in sales of handset chips, although chips for smartphones continued to sell well, according to Bruce Diesen, senior analyst at Carnegie Securities Research.

He said that even though June chip sales weakened, they were at record levels in both April and May. Wireless DSPs, used in high end Nokia phones showed weakness, and Diesen said that's related to the profit warning the Finnish company recently delivered.

NAND sales showed continuing strength in June, but DRAM chips fell. Diesen believes this is because retailers made less powerful PCs because of the rise in prices for DRAM.

June was bursting out all over with sales of AMD and Intel processors continuing to blossom, but ASPs fell in both May and June, which Diesen believes is down to a lower number of servers being sold than expected.

Chips for the automotive industry fell in June, probably down to drops in production in Japan.