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Source : http://www.electronicsweekly.com
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last activity : 07 06 2010 20:18:04 +0000
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The price war between intel and AMD is costing the semiconductor industry heavily. The microprocessor market lost revenues of $5bn in 2006, and $6bn in 2007.
It is no secret that the world’s economies have slowed down. With data trickling in for the fourth quarter, 2007 is shaping up to be a not so great year.
Retail sales are down, the housing market is in the tank, and the dollar has hit record lows. What does all this mean for chip suppliers?
There are several factors influencing the 2008 worldwide semiconductor forecast. In general, the replacement cycles for PCs and mobile phones should provide the semiconductor market with a needed boost in a volatile economic environment. With cautious optimism. Replacement cycles have been very reliable, but what is difficult to predict is what percentage of the base will be replaced. With PCs, the world became synchronised somewhat about eight years ago in terms of purchasing, but the exchange period has dispersed somewhat. This just presents a longer replacement activity cycle, which provides for more consistent demand, albeit with typically flatter performance. Mobile phones tend to be replaced about every two years. Because of the price point of this application, and the rapidly changing functionality from one generation to the next, consumers replace their phones more often than any other electronic device.
Replacement may be prompted by forces outside the typical drivers, which are new software or OS (PCs) and new improved format standards (DVD electronics) for example. Consumers may replace phones because of a failing battery, or because it was damaged or even lost. Combined with the macroeconomic drivers, phone replacement should provide the market with momentum in 2008, despite slowing demand for other products.
Although the last three years for the chip industry have been "pretty horrible". The semiconductor industry's CAGR over the last five years was 12.8 per cent - not far off the industry's historic norm of 15 per cent. "One good year of 28 per cent growth makes all the difference.
By presuming historical revenue shifts at a more conservative rate, due to the current environment, It is predicted that a better outcome can be seen in other opinions - those that show greater bias toward the unfavourable macroeconomic news.
It is no secret that the world’s economies have slowed down. With data trickling in for the fourth quarter, 2007 is shaping up to be a not so great year.
Retail sales are down, the housing market is in the tank, and the dollar has hit record lows. What does all this mean for chip suppliers?
There are several factors influencing the 2008 worldwide semiconductor forecast. In general, the replacement cycles for PCs and mobile phones should provide the semiconductor market with a needed boost in a volatile economic environment. With cautious optimism. Replacement cycles have been very reliable, but what is difficult to predict is what percentage of the base will be replaced. With PCs, the world became synchronised somewhat about eight years ago in terms of purchasing, but the exchange period has dispersed somewhat. This just presents a longer replacement activity cycle, which provides for more consistent demand, albeit with typically flatter performance. Mobile phones tend to be replaced about every two years. Because of the price point of this application, and the rapidly changing functionality from one generation to the next, consumers replace their phones more often than any other electronic device.
Replacement may be prompted by forces outside the typical drivers, which are new software or OS (PCs) and new improved format standards (DVD electronics) for example. Consumers may replace phones because of a failing battery, or because it was damaged or even lost. Combined with the macroeconomic drivers, phone replacement should provide the market with momentum in 2008, despite slowing demand for other products.
Although the last three years for the chip industry have been "pretty horrible". The semiconductor industry's CAGR over the last five years was 12.8 per cent - not far off the industry's historic norm of 15 per cent. "One good year of 28 per cent growth makes all the difference.
By presuming historical revenue shifts at a more conservative rate, due to the current environment, It is predicted that a better outcome can be seen in other opinions - those that show greater bias toward the unfavourable macroeconomic news.
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Hardik Patel, Team Lead (Staffing and Recruitment), Rishabh Softwares Pvt. Ltd. / Rishi Infotech Pvt. Ltd
| 07 24 2008 12:12:06 +0000
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