Word: isupply
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...oversupply of chips, while the global economic slowdown is drastically weakening demand for the slivers of silicon that go into computers, mobile phones, portable music players and a host of other consumer electronics products. The result has been plummeting prices. According to a price index compiled by research firm iSuppli, DRAM prices have plunged 48% in the past six months. That is good news for consumers - cheaper DRAMs mean electronics makers can pack more memory into their gadgets - but it is a disaster for manufacturers. At current price levels, chipmakers have a hard time making money. Kim Nam Hyung, chief...
...pressure on DRAM makers won't significantly ease up anytime soon. Though prices may stabilize in the short term, iSuppli's Kim doesn't expect a meaningful recovery until the second half of 2009. That turnaround will likely be driven by a sharp reduction in new capacity. Kim expects investment in chip-making facilities to fall 63% in 2009 as cash-strapped manufacturers finally scale back. Until then, however, DRAM makers will be lucky to survive - at least until the next downturn...
...easy: two weeks ago, Kodak reported a $282 million second-quarter loss, almost twice that for the same period last year. Low industry-wide profit margins mean that competing on price will be difficult. Consumers can already buy a decent camera for as little as $80. Although iSuppli, a California-based research firm, says the cost of producing a camera will continue to decline, those cost reductions won't keep pace with plummeting consumer prices. If vendors don't want to compete on price they'll have to distinguish themselves in other ways. In the heyday of digital-camera sales...
...limping behemoths like Sony have discovered, staying ahead in electronics is a relentless challenge. A host of new technologies could disrupt LCD's emergence just as easily as LCD has begun to supplant cathode-ray tubes. Even against existing technologies, Sharp faces a formidable battle. Junzo Masuda, director of iSuppli, a market-research firm in Kyoto, says the real test is how Sharp's big-screen TVs ultimately fare against plasma display panels (PDPs), the dominant type of large-screen, flat-panel displays. Sharp may have better technology, but Masuda wonders whether the company can reduce costs enough to defeat...
...have discovered, staying ahead in electronics is a relentless challenge. A host of new technologies on the horizon could disrupt LCD's emergence just as easily as LCD has begun to supplant cathode-ray tubes. And even against existing technologies, Sharp faces a formidable battle. Junzo Masuda, director of iSuppli, a market-research firm in Kyoto, says the real test is how Sharp's big-screen TVs ultimately fare against a technology called plasma display panel (PDP), currently the dominant type of large-screen, flat-panel displays. Sharp may have better technology, but Masuda wonders whether it can reduce costs...