LONDON – The significance of demand for Apple's iPhone and iPad products for the electronic components market is phenomenal.
STMicroelectronics was the leading producer of both MEMS gyroscopes and MEMS accelerometers in 2011, according to IHS-iSuppli (El Segundo, Calif.). The market research firm asserts that ST is the sole supplier of gyroscopes and accelerometers for the iPhone and iPad and Apple accounted for half of ST's MEMS business in 2011.
The total market for MEMS gyroscopes was $655.4 million in 2011, up 66 percent from $394.5 million in 2010 and exceeding accelerometer sales, according to IHS-iSuppli.
Sole supplier and sole buyer don't last long. It would be better for both companies to look for secondary buyer and supplier. On the other hands, market will generally adjust itself because there would be investors seeing the market. They would create another suppliers.