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7 August 2008


Point-to-point radio shipments set to exceed 1.5m units in 2012

Point-to-point radio shipments are set to increase at a compound annual average growth rate (CAAGR) of 8%, to exceed 1.5m units in 2012, predicts market research firm Strategy Analytics in its new report "Point-to-Point Radio GaAs Market 2007-2012."

According to the report, the primary market for point-to-point radios will continue to be Radio Cellular backhaul, with applications such as trunking, enterprise and public safety accounting for the balance. Cellular backhaul shipments will be driven by wireless network expansions, as cellular subscriber rates grow and existing links are replaced to accommodate higher bandwidth requirements.

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

"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," Anwar concluded.

See related item:

Cellular backhaul point-to-point radio GaAs market to peak in 2007

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