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News

16 July 2007

 

Handset PA suppliers set for consolidation

The base of suppliers of front-end power amplifier (PA) and filter modules for handsets will undergo consolidation over the next six years, with perhaps only six firms remaining, argues market research firm Strategy Analytics in its report ‘Will Consolidation of Handset FEM Suppliers Imitate Infrastructure RF Subsystems?’.

The report’s author, Chris Taylor, director of Strategy Analytics’ RF & Wireless Component service, compares the situation to the one that faced suppliers of power amplifier and filter subsystems for cellular base-stations a few years ago. “Increased competition and higher product development costs pushed gross margins to record lows in 2001, triggering a wave of mergers and acquisitions,” he elaborates. “Today only two significant suppliers remain, Powerwave and Andrew.”

Taylor adds, “In handsets, suppliers of PAs and front-end modules have developed a variety of technologies to segment the market and maintain share. However, competition and the dominance of two customers (Nokia and Motorola) continue to put pressure on suppliers, several of which have recently dropped out of the market. The good news is that profits should improve somewhat as the number of suppliers declines.”

See related items:

RFMD and Skyworks gain share in handset PAs: further consolidation likely

Inventory build-up trims mobile handset shipment growth to 12% in Q1/2007

Visit: http://www.strategyanalytics.net