© mablelo dreamstime.com Business | November 13, 2012
Consumer electronics industry set for marginal revenue growth
Global consumer electronics market revenue is set to expand by a scant 1.3 percent in 2012 as brands focus on low pricing during the holiday season to lure buyers impacted by weak global economic conditions.
Global consumer electronics original equipment manufacturer (OEM) factory revenue this year will rise to $361 billion, up from $356 billion in 2011, according to analytics provider IHS. Revenue during the fourth quarter, encompassing the peak holiday sales season that starts with Black Friday, will amount to $99 billion, up 2.2 percent from $96 billion during the same period in 2011. “Amid weak economic conditions, along with a lack of compelling new products, electronics brands have little choice but to slash prices to gain the attention of buyers,” said Jordan Selburn, senior principal analyst, consumer platforms, for IHS. “While consumer electronics brands and retailers always offer bargains for Black Friday, this year is likely to bring extremely steep price declines. The result is marginal growth in revenue for consumer electronics manufacturers in 2012.” Optimization rules the day “In a down economy people want bargains,” Selburn added. “Because of this, the consumer electronics industry in 2012 in general is focusing on optimization, rather than innovation. Instead of delivering totally new products or major new features, consumer electronics makers are improving their current offerings by making them smaller, more power efficient and—most importantly—cheaper.” Consumer electronics makers are offering a small number of innovative, new products, such as large-sized 4K and organic light-emitting diode (OLED) television sets. However, due to their high prices, these products will not generate significant sales this year. Blowout pricing to entice shoppers Notable U.S. Black Friday deals could include 42-inch 1080p liquid crystal display televisions (LCD TV) priced at less than $200, down from less than $500 currently for name-brand sets. LCD TVs 55-inches in size with 3-D capability might break the $800 barrier, well down from the $1,400 range. Blu-ray players could even drop under $40, a discount from the $65 range now. “At those price points, Blu-ray players and even 42-inch televisions almost fall into impulse-buy territory for some consumers,” Selburn noted. “These are the kinds of deals that will get shoppers out on Black Friday.” Where growth will occur While overall consumer electronics revenue is set to increase in 2012, much of that growth will be driven by just a few product categories, with most areas declining for the year. Products set to contract in 2012 include plasma TVs, rear-projection TVs, analog cathode ray tube (CRT) TVs, video game consoles, digital still cameras, DVD and Blu-ray Video recorders, portable media players and MP3 players, personal & portable stereos, home audio system components, camcorders and e-book readers. The majority of revenue growth will be driven by the LCD TV segment, which will see an increase in revenue, despite an expected decrease in unit shipments for the year. Higher average selling prices for feature-rich sets sold earlier in 2012 models will allow revenue to rise for the year. Other areas also expected to expand significantly this year include digital set-top boxes and consumer appliances.
Eyeing SiC and GaN potential – GlobalWafers team up with NCTU Advancements in 5G and electric vehicle technologies are bringing the mounting demands of power semiconductor. GlobalWafers is teaming up with the National Chiao Tung University (NCTU) to develop the third generation semiconductor material.
Phison expands with new R&D centre Taiwanese NAND Flash controller IC and storage solutions provider, Phison Electronics, broke ground on a new R&D center and inventory management in Guangyuan Science Park in Zhunan township, back in late march.
Infineon swings to loss as the pandemic continues impact target markets “Infineon has so far coped well with the challenging situation caused by the coronavirus pandemic. As a company, we reacted quickly to the new situation and established a framework that has enabled us to stabilize our business,” says CEO Dr. Reinhard Ploss.
Murata completes new production building The Japanese manufacturer’s subsidiary, Izumo Murata Manufacturing, has completed the construction of a new production facility which started back in August 2019.
Analog Devices team up with Intel to address 5G network design challenges The companies are collaborating to create a flexible radio platform that addresses 5G network design challenges and will enable customers to scale their 5G networks more quickly and economically.
Atlas Copco has acquired the technology and operating assets of iTrap The Swedish company has acquired a technology for process diagnostics and control in the semiconductor industry.
Goodix closes acquisition of Dream Chip Technologies Shenzhen Goodix Technology Co. Ltd., an integrated solution provider, has completed its acquisition of Dream Chip Technologies GmbH (DCT), a fabless German semiconductor technology company.
Rebound Electronics team up with IHS Markit The pace of change in the electronics industry continues unabated for all customer types – OEM, ODM and EMS. This is driven by all component manufacturer types – including semiconductor, passive, connector and electromechanical – dynamically changing pricing, lead time, life cycle management and more.
New management takes the reins at Würth Elektronik eiSos As of the 1st of May 2020, Dirk Knorr and Josef Wörner have been appointed as General Managers for the German business of the Würth Elektronik eiSos GmbH & Co. KG, having been a part of the management circle of the company for years.
Seasoned financial and semiconductor executive joins GlobalFoundries GlobalFoundries has appointed David Reeder as its new Chief Financial Officer (CFO).
Global Semiconductor Packaging Materials Market to Reach $20.8 Billion by 2024 The global semiconductor packaging materials market will track chip industry growth to expand from USD 17.6 billion in revenue logged in 2019 to USD 20.8 billion in 2024, a 3.4% Compound Annual Growth Rate (CAGR), SEMI and TechSearch International forecast.
Analog Devices acquires HDMI business from INVECAS Analog Devices, Inc. has acquired the High Definition Multimedia Interface (HDMI) business of Santa Clara based INVECAS.
Intel’s chief engineering officer to leave the company Changes to Intel’s technology organisation are coming. New leaders have been appointed and Murthy Renduchintala will leave the company.
Schleuniger Group acquires the business of US-based Cirris Systems Corp. Following many years of cooperation, the Schleuniger Group and Cirris Systems Corp. have signed an agreement for Schleuniger to acquire Cirris, based in Salt Lake City, Utah, on the basis of an asset deal.
Mu-Del Electronics acquires Luff Research Virginia-based Mu-Del Electronics LLC, an Ironwave Technologies Company and a manufacturer of high-performance RF and Microwave based systems, is acquiring Luff Research.
Sierra Wireless to divest automotive embedded module product line The company has announced a definitive agreement to divest its Shenzhen, China-based automotive embedded module product line for USD 165 million in cash.
The evolving GaN and SiC power semiconductor market landscape The emerging market for silicon carbide (SiC) and gallium nitride (GaN) power semiconductors is rapidly evolving from a startup-dominated business to one led by large-established power semiconductor manufacturers.
AEM acquires DB Design to expands design & application engineering capabilities AEM Holdings Ltd has acquired 100% stake in California-based DB Design Group, Inc. with its key team of designers and machinists located in California serving the Silicon Valley customer base.
Nanoscribe opens new Microfabrication Experience Center The Microfabrication Experience Center at Nanoscribe’s headquarters in Karlsruhe, Germany is opening its doors these days.
Arm expands R&D centre in Budapest The chip company will be growing its staff of developers by more than 50% at its R&D centre in Budapest, Hungary.
Apple wants its supply chain to be 100% carbon neutral by 2030 The Cupertino company says that its wants to bring its entire carbon footprint to net zero – 20 years sooner than the IPCC targets.
Bosch set to expand in Malaysia with new plant in Penang The German manufacturing giant has signed a Sales and Purchase Agreement (SPA) with the Penang Development Corporation for land in the Batu Kawan Industrial Park in Penang.Load more news