Strategy Analytics: Cellular Backhaul Drives Point-to-Point Radio Market

Business Wire, July 31, 2008

Shipments Will Exceed 1.5 million Units in 2012

BOSTON -- The latest study from Strategy Analytics, "Point-to-Point Radio GaAs Market 2007-2012," predicts that point-to-point radio shipments will increase at a compound annual average growth rate (CAAGR) of 8 percent, to exceed 1.5 million units in 2012. Radio Cellular backhaul will continue to be the primary market for point-to-point radios, with other applications, such as trunking, enterprise and public safety, making up the balance.

Cellular backhaul shipments will be driven by wireless network expansions as a function of cellular subscriber growth and replacement of existing links to accommodate the higher bandwidth requirements of next-generation networks. On a regional basis, Asia-PAC, Middle East, Africa and other emerging markets will drive the bulk of demand.

"GaAs component demand is skewed towards MMIC solutions, with some limited demand for discretes as well," observes Asif Anwar. "Despite the increase in unit demand, ASP pressures will mean the market for GaAs devices will be effectively flat over 2008 and 2009."

Mr. Anwar concluded, "While Strategy Analytics believes that ASPs will hold up better than previously forecast, GaAs device manufacturers targeting this market, such as TriQuint and Avago Technologies in North America, Toshiba and Mitsubishi Electric in Japan and UMS in Europe, will need to optimize their supply relationships to maintain margins in this competitive market."

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Strategy Analytics, Inc focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems Implementation Strategies and High Frequency Market intelligence. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit www.strategyanalytics.com.