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Gartner Says Top Ten Original Equipment Manufacturers Accounted for $92 Billion of Semiconductors Purchased in 2008

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The top ten original equipment manufacturer (OEM) firms accounted for $91.6 billion of the semiconductor market in 2008, representing one-third of all semiconductor consumption, according to preliminary results from Gartner, Inc. This was a 3.8 per cent decline from 2007. The leading applications remain PCs and mobile phones.

"For the electronics and semiconductor industries, 2008 started on a positive note but ended with a whimper as the global recession limited demand," said Alfonso Velosa, research director at Gartner. "Despite this, given the overall unit shipment growth of most of the leading OEMs in 2008, the semiconductor consumption threshold to be in the top ten was raised to $6.0 billion, $0.1 billion more than in 2007."

HP remained the leading OEM for semiconductor consumption. It accounted for $16.5 billion in 2008 - a flat result compared with 2007. Despite a significant increase in unit shipments, this highlights the market's changing product mix and the decline in semiconductor ASPs. As the top PC maker, HP was the leading consumer of microprocessors and memory semiconductors.

"HP and Nokia showed that manufacturers benefited from a significant decline in average selling prices," Mr Velosa said. "In addition, Nokia continued to shift its semiconductor-sourcing strategy away from designing application-specific integrated circuits (ASICs) for its handsets to using off-the-shelf application-specific standard products (ASSPs). Since Nokia is the world's largest vendor of mobile phones, this shift will continue to have a major impact on the semiconductor market."

"Apple again demonstrated how innovative use of technology and a keen understanding of consumer requirements can lead to strong growth in revenue and thus in semiconductor consumption," Mr Velosa said. "It jumped up to the number-six position, with $7 billion in semiconductor consumption for its branded products, driven by the strength of Apple's mobile phones, computers and portable media players (PMPs). Its integration of sensors and focus on industrial design and the 'user experience' set an example that few OEMs have been able to emulate."

Additional information is available in the Gartner report "Semiconductor Consumption by Top 10 OEMs, Worldwide, 2008 (Preliminary)." This report provides preliminary rankings for the top ten companies worldwide. The report is available on Gartner's website at http://www.gartner.com/.... Later this year, Gartner Dataquest will publish an analysis of the top 50 OEM semiconductor consumers by application for 2008. This report will contain an in-depth analysis of the major hardware category's semiconductor supply chain, including analysis of semiconductor consumption by device category by OEM for hardware areas such as personal computers, cell phones, and more.

This research is produced by Gartner's Semiconductors Worldwide group. This research group combines memory, microcomponents, logic, ASIC, analogue, discrete device, RF and optical segments into a complete industry picture. Products, suppliers, start-ups, technologies, regional consumption, applications and emerging technologies are all covered in this broad program. To subscribe to this service, please contact Becky Tonnesen at +1 408 468 8287 or at becky.tonnesen@gartner.com.

Gartner UK Ltd

Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for its clients to make the right decisions, every day. Gartner serves 10,000 organizations, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,800 associates, including 1,200 research analysts and consultants in 80 countries worldwide. For more information, visit www.gartner.com.

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The publisher indicated in each case (see company info by clicking on image/title or company info in the right-hand column) is solely responsible for the stories above, the event or job offer shown and for the image and audio material displayed. As a rule, the publisher is also the author of the texts and the attached image, audio and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.