Electronic equipment market up 7.7% in 2006

The past three years have seen an exceptionally strong electronic equipment market, with worldwide revenue growing by 11%, 8.0% and 7.7% in 2004, 2005 and 2006, respectively. The strongest growth has come from PCs, mobile handsets and hot consumer-electronics products such as MP3 players and digital televisions. Mobile handset growth remains vibrant in 2007 and is expected to end the year with a 10% unit increase. However, revenue growth will be only 5% as Average Selling Prices (ASPs) continue to decline. Semiconductor revenue for wireless communications grew by 14.2% in 2006, driven by the 20.7% unit growth of handsets. The 2007 semiconductor revenue growth for wireless communications will be 7.7% as the handset unit increase slows to 10%, one of the many factors behind the present slowing in the semiconductor market, iSuppli says.