The mobile basestation market is a difficult place to be right now. Not only do suppliers have to worry about the inevitable impact of the global downturn they are facing the bigger threat of saturated handset markets in most countries.
According to the marketwatcher, In-Stat, basestation semiconductor revenue will decline an average of 12.3% per year from 2008-2012.
The reason is that operators are slowing 3G network upgrade spend while they wait for anticipated new service revenues from these networks to kick in.
"The number of subscribers in many areas is reaching saturation, with former double-digit subscriber growth now running in the mid-to-low single-digits," said Allen Nogee, In-Stat analyst.
On top of this the global recession will also have an impact, but right now operator and suppliers are probably more concerned about the more deep-seated market trend.
The bold numbers are start, with last year's basestation semiconductor revenue expected to show a substantial fall from $7.2bn in 2007 to $4.6bn in 2008.
Of the main technology types, WCDMA is the only technology expected to yield semiconductor revenue growth between 2008 and 2012, said In-Stat.
The research is in "A Tough road Ahead for Base Station Components--Worldwide Semiconductor Forecast"
Leave a comment