OYSTER BAY, N.Y.-The outlook for RF power amplifier and RF power device makers is unstable, according to a new report from ABI Research.
The study, “RF Power Amplifiers: Equipment and RF Device Analysis for Cellular Infrastructure Markets,” said manufacturers in this space face a difficult period ahead due in large part to the coming slowdown of large-scale GSM deployments. Although third-generation networks will replace second-generation systems, net spending on RF power amplifiers will actually decline, according to ABI.
All manufacturers will not be affected equally, however.
“For the big OEMs making entire base stations, the RF power amplifier is only one part of the product,” said Lance Wilson, senior analyst at ABI. “But for the independent manufacturers and suppliers of RF power amplifiers, this is not good news. However, they must be given credit for anticipating that this would happen: They are trying to ‘integrate vertically’ to supply more of the base station.”
RF device manufacturers are in a tighter spot, said Wilson.
“No matter whether the business goes up or down, the price pressure on them is so great that their problem is one of revenue,” said Wilson. “Their ASP is falling, and they are converting to lower-cost packaging that is going to drive prices even further down.”
