Gartner has lifted its 2009 revenue forecast for the world semi industry to -17%, up from it's previous prediction of -22.4%. In this economy, less bad is good!
Gartner cited economic stimulus money in China and price reductions in consumer electronics as having a positive influence on demand, but also indicated that price reductions from the device manufacturers themselves were a contributing factor.
I'm curious to understand what semiconductor and component products are being discounted and why. To move obsolete inventory or discount products that are nearing obsolescence, it makes sense. But to try to use price to stimulate demand is a short-term fix at best that has long-term negatives for prices and margins across the board. But that's what we get when prices are so tightly coupled to manufacturing economics. Until the industry can move more towards a value-based pricing model, pricing and margins will continue to get excessively battered in both good times and bad.
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