Cadence cuts Allegro price for Europe push

Cadence cuts Allegro price for Europe push
Richard Ball Cadence is making a push into the mainstream PCB design market, in a move which signals tough times ahead for many smaller firms. The company is launching in Europe a cheaper version of Allegro, its PCB design package. The company hopes the launch will grow its product revenues to nearly 30 per cent a year. “Cadence examined the market and found it a slow growth sector, around eight to ten per cent,” said Randy Hartgrove, product marketing manager for Allegro. According to Hartgrove, the PCB market has two types of customer: high-end and mainstream. With Allegro, Cadence has about a third of the high-end market, alongside Mentor Graphics and Zuken-Redac, the Anglo-Japanese firm. Opportunities here are limited but a multitude of firms contest the mainsteam market, worth nearly $200m a year. Cadence has thus launched Allegro studio, competitively priced at $11,000 when compared with products from firms such as Veribest, PADS and Orcad. The move bodes ill for the market’s smaller players. “You’re going to see some consolidation in the market,” said Hartgrove.


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