Competition, excess manufacturing capacity impact optoelectronics profitability.The recent economic slowdown has reduced demand from end-user industries, heightening competition and flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. the growth rate in the world optoelectronics market. New analysis from Frost & Sullivan (Palo Alto Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , CA, www.electronics.frost.com) reveals that this industry generated revenues totaling $4.23 billion in 2002. Total market revenues are expected to reach $7.22 billion in 2009. "Lack of capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. , price constraints and reduced volumes are greatly impacting the profitability of optoelectronic component manufacturers," said Frost & Sullivan research analyst Mandeep Singh Oberoi. As rapidly expanding communication technologies drive higher bandwidths and increased speed of communication products, manufacturers of optoelectronic components are under pressure to enhance the speed of the devices as well as the bandwidth they can support. Another trend in the industry is toward lower package dimensions to help reduce the size of products. Higher budgets are required to design and test newer packages without affecting the speed of the optoelectronic device. However, customers are not willing to pay a higher price for improved technology, and vendors are being compelled to cut costs without compromising on quality. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the report, the increasing brightness and range of colors not of the white race; - commonly meaning, esp. in the United States, of negro blood, pure or mixed. See also: Color in light-emitting diodes (LEDs) offers new market opportunities for manufacturers that keep pace with the technology. In other segments, the convergence of computers, communications and consumer electronics is driving demand for optocoupler devices, while photodetectors are likely to do well in the medical device market. High-end telecommunications products, office automation and peripheral devices are expected to push laser diode A semiconductor-based laser used to generate analog signals or digital pulses for transmission through optical fibers. Both laser diodes and LEDs (light-emitting diodes) are used for this purpose, but the laser diode generates a smaller beam that is easier to couple with the smaller core sales. |
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