Guidance And DemandPower Integrations reported generally in-line results but significantly worse guidance as management called out a weak demand environment, particularly in appliances.
Inventory And DemandLooking ahead to 4Q, management called out weaker demand in appliances, further impacted by the inventory buildup of appliances at Chinese OEMs ahead of China’s consumer incentive program.
Market OutlookThe outlook is disappointing, driven entirely by the appliance market on enthusiastic customer inventory builds, anticipating stimulus actions in China to spur demand.