Industry Developments Confirm Flat Market For RF Power Amplifiers And Devices

Oyster Bay, NY -- The market for the RF power amplifiers and RF power devices used in cellular base stations remains "in a tenuous state," according to tech markets analyst ABI Research.

Last year, the firm's study "RF Power Amplifiers: Equipment and RF Device Analysis for Cellular Infrastructure Markets" came to the conclusion that manufacturers of these products were in for a difficult period, due to the progressive slowing of GSM base station deployment and the measured pace of 3G network construction (see related story).

The study ties together the interdependent relationship of RF power semiconductors to RF power amplifiers, and analyzes their efficiency, physical size, linearity, and reliability, as well as the price pressures that are driving new and innovative techniques and materials. It also provides quantitative forecasts through 2009 for both segments.

Market developments since the study was released have borne out its sober assessment. 2005, concludes director of wireless research, Lance Wilson, will mean more of the same. "The factors that limited RF amplifier and device markets in 2004 have not changed," he says. "Amplifier manufacturers depend entirely on the pace of base station construction carried out by service providers, and when that demand slows, the effect ripples down to the RF device makers."

Wilson also reiterates his earlier claim that not all manufacturers will experience the slowdown equally, with OEMs making entire base stations the least affected. But, he concludes, "3G -- the one bright spot -- cannot provide enough turnover in revenues or in shipped units to turn this market segment around. And the device suppliers are still hemmed-in by their falling ASPs and their position at the bottom of this 'food chain'."

Source: ABI Research