Analog market slows as mobile phones doze
Jun 16, 2005
After achieving 17.4 percent revenue growth in 2004, the worldwide analog Integrated Circuit (IC) market is decelerating in 2005 due to a slowdown in the mobile-phone market.
Following a flat first half for the analog IC market, analog revenue growth is expected to amount to 5.8 percent for all of 2005, iSuppli Corp. predicts.
Global analog IC sales will rise to $39.8 billion in 2005, up from $37.6 billion in 2004. The longer-term outlook for analog ICs appears somewhat brighter, with revenue growing to $59 billion in 2009, rising at a Compound Annual Growth Rate (CAGR) of 9.5 percent from $37.6 billion in 2004, according to iSuppli.
Mobile-communications-specific parts represent the single largest market for analog ICs, accounting for 23 percent of sales in 2004. The robust handset market during the past two years has driven mobile-communications-specific analog IC products to 17 and 21 percent growth respectively in 2003 and 2004.
However, mobile-phone sales growth will slow dramatically in 2005, with worldwide unit shipments rising only 5.3 percent in 2005, compared to 23.3 percent in 2004, according to iSuppli. This will restrain mobile-communications specific analog IC revenue to just 3 percent growth in 2005, iSuppli predicts.