The supply of semiconductor devices for GPS grow by 15% in 2009 compared with the level of last year, claiming to ABI Research. This growth rate is lower than 2007 and 2008, and it reflects the influence of several factors - above all, uncertain consumer demand for the device during the economic downturn.
The demand for devices with GPS continues to grow - said senior analyst George Perros (George Perros). But the pressure on prices and shorter product life cycles will have a negative impact on suppliers` margins GPS-chipsets. While market prospects for the GPS functions of mobile phones as positive, the business prospects for the semiconductor sector are contradictory and complex.
The numerical growth has been achieved using the chips in mobile devices, particularly in mobile phones and personal navigator. These sectors, along with developing markets that include digital cameras and netbuki, podhlestnut total supply of equipment for GPS in 2010 and beyond. Markets professional and industrial use of GPS, including the system of automatic control, the calculation of time and timing, will also help with the certainty of growth.
Suppliers of IP for GPS responding to trends in consumer markets, creating chipsets with higher integration and improved layout. This desire is also due to the desire of suppliers to reduce costs and space occupied by a module, but on the other hand, expand the functionality of the device. The latest series of the GPS chips combine with other types of radio communication, such as Wi-Fi, Bluetooth and FM. According to suppliers, greater functionality in smaller size will provide competitive advantages in key areas of their application.
Despite the favorable growth market GPS-chipset, maintaining profitability in this sector would require market participants depth planning and aggressive management of costs, analysts believe.