LONDON – The consumer electronics equipment and semiconductor markets are rebounding in 2010, according to analyst firm iSuppli Corp.
Revenue for the consumer electronics equipment market in 2010 is projected to reach $259.0 billion, all but erasing the decline of the previous year when revenue fell by more than 3 percent. The firm asserts that revenue will continue to rise in the coming years, increasing by 6.7 percent in 2011 and by 7 percent in 2012. Expansion will slow to 1.2 percent in 2013, after which the market is projected to contract by 0.6 percent in 2014.
Consumer-electronics-related semiconductor revenue will rise to $57.2 billion in 2010, up 27.7 percent from $44.8 billion in 2009, states iSuppli. This represents a dramatic reversal from 2009, when revenue declined by 15.7 percent. Revenue will continue to rise during the coming years to reach $69.4 billion in 2014.
"The increase in consumer electronics revenue is currently fueled by high-value and high-volume products such as LCD-TVs and Blu-ray players," said Jordan Selburn, principal analyst for consumer platforms at iSuppli, in a statement. "A [IC] design win in a high-value consumer electronics product could make $100 million or more during the life of the device."
However, the cost of developing leading-edge application-specific chips continues to rise, ranging from $10 million to $20 million, Selburn said. This puts pressure on smaller second- and third-tier companies that may not be able to afford leading-edge manufacturing.
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