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The juggernaut driving the electronics equipment and semiconductor industries the past few years - consumer electronics - is showing signs of slowing down, according to a market research report by iSuppli Corp. However, mobile products such as personal media and MP3 players continue to remain strong, the firm said.
Chris Crotty, senior iSuppli analyst, said in a recent presentation that OEM factory revenue for consumer electronics will see a compound annual growth rate of 3.6% from 2007 through 2011—down from 8.9% from 2001 through 2006. The CAGR for consumer-oriented semiconductors will slow to 4.4% through 2011, down from 10.7% from 2001 through 2006.
On a dollar basis, global consumer electronics product OEM sales will rise from $349.9 billion in 2007 to $393.4 billion in 2011, while associated semiconductor revenue will rise from $58.1 billion to $69.1 billion over the same period.
The key driver in consumer electronics growth will be portable media and MP3 players, whose unit sales will rise to 268.6 million in 2011, a 13% CAGR, according to iSuppli. Increased Internet connectivity, growing content availability, and declining prices of key parts like NAND flash and SoC controllers are factors.
Although portable media devices are likely to face pressure from mobile phones that are adopting music playback capability, the market for these devices will not disappear soon, according to Crotty.
“There are many factors other than technology at play in the competition between PMP/MP3 players and mobile phones,” he said.
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Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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