News
EL SEGUNDO, CA – While growth in the overall consumer electronics equipment and related semiconductor markets is undergoing a slowdown, analysts at iSuppli Corp. say there is hope for more profitability for personal media players/MP3 players.
The OEM factory revenue CAGR for consumer electronics products will decelerate to 3.6% from 2007 to 2011, down from 8.9% between 2001 and 2006, the firm said. The CAGR for the consumer electronics-oriented semiconductor market will slow to 4.4% for the period between 2007 and 2011, down from 10.7% from 2001 through 2006.
Worldwide consumer-electronics product OEM factory revenue will rise to $393.4 billion in 2011, up from $349.9 billion in 2007. Associated semiconductor revenue will increase to $69.1 billion in 2011, up from $58.1 billion in 2007, according to iSuppli.
Despite the overall slowdown, mobile products are generating strong growth, with PMP/MP3 players leading the way, said the firm.
Global PMP/MP3 player unit shipments will rise to 268.6 million units in 2011, expanding at a CAGR of 13% from 128.7 million units in 2005, the company predicted. Global PMP/MP3 factory revenue will rise to $21.5 billion by 2011, growing at a CAGR of 7.4% from $14 billion in 2005.
According to the firm, the strong growth of the PMP/MP3 market is the result of increased Internet connectivity, growing content availability and declining prices for key components like NAND flash memory and system-on-chip (SoC) controllers.
iSuppli warned that PMPs/MP3s face rising competitive pressure from mobile phones, which are adopting music-playback. In 2007, music-enabled mobile phones will out-ship PMP/MP3 players by a factor of nearly 3:1, and by 2011, that gap will expand to 4.5:1, the firm said.
TAIWAN – In an attempt at a major turnaround for BenQ Corp., the Taiwanese ODM's board of directors approved a plan to spin off its branded business and morph to a fabless model.
BenQ will be renamed Jia Da Corp., while the spinoff will take the name BenQ. The new company will be a fully owned subsidiary of Jia Da Corp.The plan is subject to approval by shareholders on June 15; the company's board has set the spinoff for Sept. 1.
SANTA CLARA, CA – Sun Microsystems Inc. has reported third-quarter net income of $67 million, compared with a loss in the third quarter last year of $217 million.
The Santa Clara-based company reported weaker-than-expected revenue of about $3.3 billion, up slightly from about $3.2 billion year-over-year. Total gross margin as a percent of revenues was 44.5%, an increase of 1.5%, compared with the third quarter of 2006.
The Santa Clara-based company reported weaker-than-expected revenue of about $3.3 billion, up slightly from about $3.2 billion year-over-year. Total gross margin as a percent of revenues was 44.5%, an increase of 1.5%, compared with the third quarter of 2006.
Deutsche Bank Equity Research says Sun may get a lift from its recent advanced product line release, but expects x86 growth to slow further as customers wait for Sun's Intel-based x86 refresh later this summer. VMware-driven consolidation continues to pressure x86 demand, says the firm.
Deutsche Bank suggests more restructuring will be required for Sun to hit long-term margin targets. They believe it will prove difficult for Sun to grow into its existing cost structure because of the highly competitive nature of the server market.
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