Cellular Base Station Chip Makers Face Declining Demand

For those making base station equipment and the semiconductors used in them, the next few years may be difficult ones, reports In-Stat .  Base station semiconductor revenue will decline an average of 12.3% per year from 2008–2012, the high-tech market research firm says. There are several reasons for this.

Many operators have spent heavily on 3G upgrades and they are now waiting for service revenues from these networks before they invest more. In addition, the number of subscribers in many areas is reaching saturation, with former double-digit subscriber growth now running in the mid-to-low single-digits. The global recession will also have an impact. Although most people aren't likely to part with their cell phones, they may replace them less often, and reduce services they don't find value in or can't afford.

Recent research by In-Stat found the following:

  • The slowing worldwide economy is having wide-ranging negative effects ll regions, with the possible exception of Africa.

  • Base station semiconductor revenue will drop from $7.2 billion in 2007 to $4.6 billion in 2008.

  • Of the main technology types, WCDMA is the only technology expected to yield semiconductor revenue growth between 2008 and 2012.

This Market Alert is drawn from the In-Stat research,   A Tough Road Ahead for Base Station Components— Worldwide Semiconductor Forecast (#IN0803995GW), which covers the worldwide market for cellular base station semiconductors. It provides forecasts for new base station units, new base station revenue, and new base station semiconductor revenue by region through 2012. Analysis of regional markets and trends is included.

For more information on this research or to purchase it online, please visit: or contact a sales representative:

The price is $3,495 (US).

This research is part of In-Stat's Cellular Infrastructure service, which provides comprehensive analysis of the worldwide mobile network infrastructure and component markets. It includes assessments of market trends and emerging technologies in the wireless infrastructure industry, subscriber and subscriber trend reports, and forecasts and coverage for base station equipment, semiconductor content, voice channels, and power amplifiers.

Related In-Stat research:

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