Thursday, December 08, 2005

Key Mobile Phone Tech Suppliers' Revenues to Plummet

Technology News writes about a new study from Strategy Analytics that warns, "companies focused on supplying light-emitting diodes (LEDs) for liquid crystal displays (LCD) and keypad backlighting functions will see their revenues plummet an astounding 41 percent in the next three years."

The study found that "the introduction of brighter LEDs and "more efficient backlighting" technologies will spur a "net reduction" in the average number of LEDs used in both the LCD and keypad backlighting segments of the industry." Falling average selling prices would also lead to dropping revenues as well.

However the growing trend of cameraphones with flashes might be able to offset this down cycle. Stuart Robinson at Strategy Analytics said, "Growing penetration of cameras into mobile phone handsets is coupled with the appearance of higher resolution cameras and a consumer requirement that camera phones should be able to take good quality photographs. An essential part of this requirement is a high-quality flash function that can operate over distances of more than 1 meter. This will drive demand for camera handset high-power white LEDs."

Asif Anwar at Strategy Analytics added, "The requirements of high illuminance, high efficacy and appropriate thermal management for LEDs used in camera flash functionality present considerable challenges, but the upside is a market which will grow at a CAAGR of 87 percent through to 2009."

Ther article looks at some of the innovative companies and technologies driving the industry, such as California Micro Devices and Agilent. Stephen Spivey at Frost & Sullivan said, "Elements of the company's successful product line strategy include the introduction of new products strategically positioned to balance the product line and the ability to accommodate different market segments."