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mijsmith
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Can Market Maturation and Economies of Scale co-exist?
mijsmith   6/7/2014 12:55:30 PM
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The chip industry is arguably one of the technology field where we usually see a quick progression to level of maturation where differentiation becomes quite difficult to achieve once markets have received and consumed almost every distinguishing features ever possible. Wireless or Mobile Communications and Multimedia semiconductors are a very booming and flourishing segment today chiefly due to to the current increasing demand of information availability by mobile users. Moreover just as this article suggests, growth is shifting to lower-end markets and that's where the most dynamic user adoption for reason of the mobile factor uniquely characterized and accentuated in such markets. We all know how Qualcomm is leading the charge in this domain with quite a significant share but we are considering the fact that things are shifting towards lower-end market, then we should be watching players such Mediatek which is making big strides in the industry by offering performance and affordability. This will certainly heat up the competition and create an very versatile and flexible marketplace where we could see more departure from differentiation factors to a more critical one which is cost. However we are entering the new era of wereables, Internet of Things, Ubiquitous and ambient networks which will certainly keep differentiation still relevant and bankable.



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