ACTS: Narrowing margin in MP3 market not to affect much
Written by Administrator
Tuesday, 13 February 2007
BEIJING, Feb. 13 (InfoChina) – Despite that profit margin in manufacturing MP3 chips is on a declining trend, Actions Semiconductor (Nasdaq: ACTS) will not be severely affected, thanks to large chips shipment, said a source with the company.
In the fourth quarter of 2006, the company shipped more than 24 million units of chips, accounting for some 50 percent of all chip shipments worldwide, according to its financial report for 4Q and the full year of 2006.
The large shipment has helped the company to achieve record high revenue of 170.4 million dollars in 2006, up 14 percent from 2005.
As the MPs market becomes mature, MP3 chip price has declined by a large margin. In addition, domestic chip makers are emerging, such as Vimicro (Nasdaq: VIMC) and Anyka, competing with Actions Semiconductor and the US SigmaTel.
A source with Anyka noted that Actions Semiconductor has acquired a big share on the low-end market, but Anyka focuses on the middle- and high-end market.
Ye Nanhong, CEO of Actions Semiconductor earlier said that it would speed up efforts on high-end products.
Recently, Credit Suisse adjusted its rating on Actions Semiconductor from “outperform” to “neutral”. (Edited by Chen Dongyi,
)
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