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Communications market – slow growth

Profits from sales of communication chips fell from $ 41.5 billion, according to new research. in 2000 to 28.8 billion. in 2021. This figure is expected to be only 29.6 billion in 2021. (up 3%).

As for the finished network equipment (routers, switches, etc.d.), then in comparison with last year sales figures fell by 15% – from $ 265 billion. up to $ 224 billion.

We have repeatedly talked about the deplorable state of affairs in the mobile communications sector. The main “brake” of development was the unwillingness of subscribers to change old phones for new models. Only 25% of those who bought phones last year changed them this year. The average phone replacement time this year has risen from 32 to 48 months. By 2021, this figure should level out to 38 months.

The conclusions here are the same – after the decline of the industry this year, the telecommunications sector will recover very slowly and will repeat the indicators of 1999-2000 only by the second half of the decade.

Source: Silicon Strategies

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