RF Component Industry Growth Stalled in Q1 2012
Revenues Remained Robust, but Profits Declined
Boston, MA - June 19, 2012 - Sales of RF and wireless components declined approximately 3 percent in Q1 2012 with lower shipments of cellphones and slower growth in Asia and Europe, as detailed in the Strategy Analytics RF & Wireless Components (RFWC) report, "RF Component Industry Review: January - March 2012."
According to Christopher Taylor, Director, Strategy Analytics RF & Wireless Components, "Component suppliers produced a blizzard of new products and accompanying product announcements in Q1, a period that included two of the largest industry trade shows, the Consumer Electronics Show (CES) and Mobile World Congress (MWC). Of greatest significance, seven suppliers announced multimode LTE basebands, and three suppliers announced chipsets for 802.11ac Wi-Fi. Devices that support these standards will drive much of the expected wireless industry growth over the next five years."
The 75 page report covers financial results for 51 suppliers, mergers and acquisitions, start-up funding and significant product announcements in radio components during the quarter.
Stephen Entwistle, VP of the Strategy Analytics Strategic Technologies Practice, added, "The median profitability of companies in the industry declined from a healthy 12 percent profit-to-sales ratio the previous quarter to a weaker 5.3 percent reported in Q1. This could mark the start of a second dip of a double-dip recession, but sales declined a very modest 3 percent sequentially for the industry, remaining quite healthy by historical standards."
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