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Apple Guides Chip Design, iSuppli Reports
August 16, 2007 |Estimated reading time: 1 minute
EL SEGUNDO, Calif. Apple Inc.'s iPhone release bumped up the company's influence on semiconductor design in the first half of 2007, analyst firm iSuppli Corp. reports. Its regional design influence tool (RDIT) shows Apple's design activity has a significant effect on the global electronics supply chain.
Apple ranked fourth among electronic product designers in the first half of 2007, behind Hewlett-Packard Co. (HP), Dell Inc., and Motorola. Apple's influence has grown faster than that of any other company in the sector. The company's 2007 design activity thus far has driven the largest semiconductor spending increase among top 10 electronics OEMs in the U.S., iSuppli asserts, estimating the influence to equal $3.8 billion in the first half.
Design for electronic goods, such as the iPhone or iPod, leads to equipment production, in turn driving semiconductor purchasing, said Min-Sun Moon, analyst, OEM semiconductor spending and design influence, iSuppli. Companies designing these electronic products specify uses for semiconductor components in the PC, mobile phone, television, etc., reshaping the demand and applications for given devices.
iSuppli directly contributes Apple's rise in influence to the iPhone release at the end of June 2007, and an anticipated second generation release in 1218 months. iSuppli credits the second generation, and continuing sales of the first, for maintaining and growing Apple's design influence through 2008.
iSuppli's RDIT examines semiconductor spending attributable to electronic-equipment design activity. It provides fiscal equivalents for design influence for 182 OEMs, representing 80% of the global market for 10 application segments, 30 semiconductor-device segments, and 41 countries.
The U.S. led the global market in design influence through the first half of 2007, totaling 34.4%. Japan reached 21.8%. Emerging economies in other regions, combined with cost-effective engineering talent, are leading OEMs, original design manufacturers (ODMs), and independent design houses to seek out new business and increased influence. The fiscal influence of these emerging regions is still marginal, iSuppli notes, and engineering labor shortages in the near future could destabilize their growth.
For more information on design influence, see iSuppli's Website.