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News Release from: Strategy Analytics
Edited by the Electronicstalk Editorial
Team on 31 March 2008
RF components market in decline?
Report attributes the slow decline in profits to maturing wireless markets, increasing component complexity and more rapid commoditisation at the low end.
A new report from the Strategy Analytics RF and Wireless Component Strategies service identifies a slow decline in the profitability of RF component suppliers over the past two years, which will in all probability continue through 2008 The report "Lower profits ahead for RF as global economy stutters", examines the collective financial performance of approximately 49 suppliers of radio components for wireless applications, and attributes the slow decline in profits to maturing wireless markets, increasing component complexity and more rapid commoditisation at the low end
This article was originally published on Electronicstalk on 4 Nov 2005 at 8.00am (UK)
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The report also examines the effects of tighter credit, inflation and the devaluation of the dollar on the outlook for 2008.
"It is difficult to predict the precise effect of global economic conditions on component suppliers", admits Christopher Taylor, Director of the Strategy Analytics RF and Wireless Components market research service.
"However, the recent trend toward lower profits in the RF sector is clear, and tighter credit in the global financial markets coupled with lower spending by US consumers, will do nothing to counter the trend".
Stephen Entwistle, VP of the Strategy Analytics Strategic Technologies Practice, adds: "We believe that profits will decline by about 1% of sales for RF component suppliers this year".
"This small decline will affect the viability of financially weaker suppliers and startups, but should leave top performers in terms of profits-to-sales like Qualcomm, MediaTek and Hittite unharmed".
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