News
HONG KONG – Worldwide consumer broadband connections will grow from 323 million connections in 2007 to 499 million in 2012, according to Gartner, Inc.
Worldwide consumer broadband connections penetrated 18% of households in 2007, and by 2012, households with a broadband connection will reach 25%, according to the research firm.
Five countries exceeded 60% broadband penetration into the home in 2007: Canada, Netherlands, Switzerland, South Korea and Hong Kong. This is expected to grow to 17 countries by 2012.
“Depending on the specific market conditions, availability of Internet-enabled devices and the continued impact of broadband on consumer lifestyles, we expect some markets will have a broadband ceiling at 80% penetration or greater,” said Amanda Sabia, principal research analyst at Gartner.
The high penetration rates seen in countries such as South Korea, Hong Kong and the Netherlands demonstrate what is possible under the right conditions. The small, denser countries, or countries with government-backed spending for broadband infrastructure, have an advantage, says Gartner. As a result, by 2012, these countries will have maintained their lead in broadband penetration rates.
The top three markets of South Korea, the Netherlands and Hong Kong are already heavily penetrated, so the change in rates is minimal compared with markets such as the US, Japan, Czech Republic, New Zealand and Australia. These markets will exhibit a swelling of broadband penetration by more than 20 percentage points, according to Gartner.
Emerging markets in Asia-Pacific will contribute the greatest increase (59 million) of consumer broadband connections worldwide. This market alone accounts for more than one-third of the five-year growth in consumer broadband connections. China alone will supply 25% of the overall growth in worldwide consumer broadband connections. The mature markets of Asia-Pacific and Japan will continue to have the highest broadband penetration of households. As this market is reaching saturation, the growth in the number of connections (18 million) is the lowest among the mature market segment.
“Broadband penetration will increase, especially in the geographically larger markets, as current broadband providers continue to deploy their services, as newer technologies (wireless broadband, such as WiMAX) attract subscribers, and as users experience firsthand how speed enhances their Internet sessions,” Sabia said.
When looking at household penetration for emerging versus mature markets, the overall growth is skewed, says the firm. Not only will the digital divide continue between the emerging and mature markets, it will widen by 13 percentage points.
“Newer ventures in these markets are primarily entertainment (such as Internet video content and games), IPTV and home networking, which will bring these devices and services into one integrated system within the home,” said Sabia.
ARLINGTON, VA – US shipments of consumer electronics will top $173 billion in 2008, according to new data from the Consumer Electronics Association. That’s up $2 billion from the trade group’s January estimates.
HILLSBORO, OR – ASYS Inc. has opened an office in Hillsboro, OR, and is expanding its Atlanta operations as well.
ASYS is a supplier of handling systems and high-end printers for thick film and solar applications. It is also the parent company of EKRA.
“Two service and application engineers are located onsite, and we are stocking spare parts for all of our major metallization equipment,” said Markus Wilkens, ASYS GM. “We are also expanding our base in Atlanta, as we are installing multiple metallization lines in the US.”
ASYS is a supplier of handling systems and high-end printers for thick film and solar applications. It is also the parent company of EKRA.
“Two service and application engineers are located onsite, and we are stocking spare parts for all of our major metallization equipment,” said Markus Wilkens, ASYS GM. “We are also expanding our base in Atlanta, as we are installing multiple metallization lines in the US.”
The firm is headquartered in Dornstadt, Germany, and maintains its American headquarters north of Atlanta.
SAN JOSE – Flextronics today announced first-quarter record net sales of $8.4 billion, up 62% year-over-year. The results include the acquisition of Solectron, which Flextronics finalized during the third quarter last year.
Record adjusted operating profit for the period increased 83% compared to the same quarter last year, to $280 million.
Record adjusted net income was $227 million, up 69% year-over-year.
Flextronics said it would repurchase up to 10% of its outstanding ordinary shares, joining rivals Benchmark and Jabil in stock repurchases.
For the second quarter, revenue is expected to be in the range of $8.5 billion to $9 billion.
Record adjusted operating profit for the period increased 83% compared to the same quarter last year, to $280 million.
Record adjusted net income was $227 million, up 69% year-over-year.
Flextronics said it would repurchase up to 10% of its outstanding ordinary shares, joining rivals Benchmark and Jabil in stock repurchases.
For the second quarter, revenue is expected to be in the range of $8.5 billion to $9 billion.
NEENAH, WI – EMS provider Plexus Corp. announced third-quarter revenue of $456 million, up about 17% year-over-year.
Gross profit for the period was $48.8 million, up about 21% compared to the same fiscal period in 2007.
For the nine-month period ended June 28, net sales were about $1.37 billion, up nearly 18% compared to the year-ago period. Gross profit was about $156 million, up nearly 30% year-over-year.
For the quarter, return on invested capital was 21%, and revenues exceeded company guidance.
In a press release, president and CEO Dean Foate said, “Sequentially strong performance in our Wireline/Networking and Medical sectors offset a modest decline in our Industrial/Commercial sector and an anticipated $26 million reduction in revenue from our large unnamed defense program.”
Excluding that defense program, revenue grew 7.3% sequentially.
The firm expects fourth-quarter revenue between $470 million and $490 million.
Gross profit for the period was $48.8 million, up about 21% compared to the same fiscal period in 2007.
For the nine-month period ended June 28, net sales were about $1.37 billion, up nearly 18% compared to the year-ago period. Gross profit was about $156 million, up nearly 30% year-over-year.
For the quarter, return on invested capital was 21%, and revenues exceeded company guidance.
In a press release, president and CEO Dean Foate said, “Sequentially strong performance in our Wireline/Networking and Medical sectors offset a modest decline in our Industrial/Commercial sector and an anticipated $26 million reduction in revenue from our large unnamed defense program.”
Excluding that defense program, revenue grew 7.3% sequentially.
The firm expects fourth-quarter revenue between $470 million and $490 million.
TORONTO – EMS provider Celestica Inc. today announced second-quarter revenue was $1.88 billion, down about 3% year-over-year.
Net earnings were $39.8 million, compared to a net loss of $19.2 million for the same period last year.
For the first six months of 2008, revenue was $3.7 billion, compared to $3.78 billion for the same period in 2007. Net earnings were $69.6 million, compared to a net loss of $53.5 million last year.
“We continue to show improvements in operating margins and return on invested capital,” said Craig Muhlhauser, president and CEO of Celestica. “We are continuing to win new business across all of our key market segments.” He called end-market visibility “limited.”
For the third quarter, the company anticipates revenue in the range of $1.9 billion to $2.1 billion.
Net earnings were $39.8 million, compared to a net loss of $19.2 million for the same period last year.
For the first six months of 2008, revenue was $3.7 billion, compared to $3.78 billion for the same period in 2007. Net earnings were $69.6 million, compared to a net loss of $53.5 million last year.
“We continue to show improvements in operating margins and return on invested capital,” said Craig Muhlhauser, president and CEO of Celestica. “We are continuing to win new business across all of our key market segments.” He called end-market visibility “limited.”
For the third quarter, the company anticipates revenue in the range of $1.9 billion to $2.1 billion.
Press Releases
- XLR8 EMS Welcomes Raul Jorge Lopez Jr. as Director of Program Management and Procurement
- Koh Young America Promotes Ramiro Mora to Lead Service and Applications in Mexico and South America
- ViTrox Americas Welcomes Huy Pham as Technical Support Engineer
- XLR8 EMS Appoints Steve Dutton as Chief Sales Officer