Wednesday, March 14, 2007

Motley Fool on Micron

Motley Fool writes: "iSuppli expects the overall CMOS image sensor market to grow by 14%-15% annually through 2010. This growth rate may not seem too bad, but this is growth in units, rather than revenues. Throw last year's 19% average selling price decline (for Micron's sensors) into the mix, and it is possible that revenues for the industry overall will grow in the low- to mid-single digits at best over the next few years.

A continuation of average selling price declines seems likely, given that some semiconductor giants are squaring up -- Micron's success hasn't escaped notice. Competitors include MagnaChip, Samsung, Omnivision, Sony, STMicroelectronics, and Toshiba.

In order for any one of the players listed above to outgrow the market, it will likely have to steal market share. Hmm ... slowing growth and increasing competition -- sounds like an environment ripe for a price war.
"

To me the oncoming price war is a natural result of Micron inability to lead the market, letting competitors like Samsung and ST close the technology gap. Also, pixel technology laggards trying to compensate their lack of small pixels by features, be it DxO focus, SiliconHive ISP or Wide-DR.
The natural way for Micron would be the speed-up the pixel development, but this does not seem to work anymore at Micron. Who will be the next pixel race leader? Samsung?

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