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ABI Research: Competition Heats Up RF Power Amplifier Market
[November 13, 2007]

ABI Research: Competition Heats Up RF Power Amplifier Market

TMCnet Contributing Editor
Chinese vendors, led by Huawei Technologies and ZTE (News - Alert), have become more active in the RF power amplifier market with significant effect on the device market. New competition among the vendors is increasing, says ABI Research (News - Alert), in a recent report.

“This is both an opportunity and a threat,” says ABI Research director Lance Wilson. “The Chinese position in the RF power amplifier and device market is not insignificant. Growing Chinese participation is an addition to the markets, but at the same time represents competition for incumbent vendors.”
Though much of the Chinese output would not come to the markets outside China, it would reduce the current opportunities for foreign vendors in the Chinese market leading to an indirect competition. The start of TD-SCDMA network deployment in China will also contribute to overall market size.
ABI Research report on this market points to two significant factors that have changed the market landscape in recent months: the entry of Chinese vendors, and the growing use of high-efficiency amplifier designs.
The situation of RF power amplifier and device market outside the China is also becoming tough for the vendors, according to ABI Research, which forecasts a general decline in the global RF power amplifier market. However, the decline is not as severe as had been feared, it explains.
“The RF power amplifier market for this segment is still showing a downward trend,” explains Wilson, “but the good news is that the descent is not as precipitous as originally thought. Though basic GSM is slowly declining, EDGE has satisfied the data needs of many users to a greater extent than anticipated. Many operators are becoming more wary of big 3G-related spending. The result is that such GSM-based systems have enjoyed a longer life-cycle, which in turn stretches out the growth period for 3G. This has a direct impact on what happens in the power amplifier and devices market.”
PR Sai is a contributor to TMCnet. To see more of his articles, please visit his columnist page.
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