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Chinese Surface Mount Technology Equipment Market Rapidly Developing - New analysis from Frost & Sullivan finds that the Chinese Surface Mount Technology (SMT) Equipment Markets earned revenues of $1,848.8 million in 2004 and estimates this to reach $3,530.9 million in 2011.
Chinese Surface Mount Technology Equipment Market Rapidly Developing

 

NewswireToday - /newswire/ - Palo Alto, CA, United States, 2006/10/03 - New analysis from Frost & Sullivan finds that the Chinese Surface Mount Technology (SMT) Equipment Markets earned revenues of $1,848.8 million in 2004 and estimates this to reach $3,530.9 million in 2011..

   
 
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The Chinese surface mount technology (SMT) equipment market is a rapidly developing market and will continue to grow strongly mainly driven by demand from end-user sectors like telecom and computers. However, factors like declining prices of the SMT equipment are limiting the growth of the market. As a result, SMT equipment vendors are finding it hard to maintain a balance between reducing costs for customers, new product development, effective customer support and providing efficient after-sales service and continue growing.

New analysis from Frost & Sullivan finds that the Chinese Surface Mount Technology (SMT) Equipment Markets earned revenues of $1,848.8 million in 2004 and estimates this to reach $3,530.9 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Chinese Surface Mount Technology (SMT) Equipment Markets then send an e-mail to Tori Foster - Corporate Communications at tori.foster[.]frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via email upon receipt of the above information.

“The Chinese surface mount technology (SMT) equipment market has been developing rapidly since 2001 primarily from the growth of the EMS industry in China,” says Frost & Sullivan Research Analyst Fan Zhu. “An increasing number of OEMs are outsourcing their manufacturing operations to EMS providers in order to focus on key core competencies such as marketing and R&D. Sales to the EMS providers have been significantly replacing sales to OEMs in the total SMT equipment market since 2003.”

Leading EMS providers such as Flextronics, Solectron, FoxConn and First Computer have become the biggest buyers of SMT equipment in China and the Asia Pacific Rim since 2003.

The Chinese SMT equipment market is significantly affected by key factors such as price erosion, industry restructuring and the under-utilization of existing equipment. Declining cost of the equipment has been a major concern in the industry, which has led to declining market revenues.

“Since 2001, SMT equipment manufacturers have seen prices decline drastically, which has pushed their profit margin towards the breakeven point and reduced the overall size of the market,” says Zhu. “The price of SMT machines has experienced a steady decline during the historical period because of heavy competition and the imbalance between demand and supply. As a result, there is periodic flooding of the market with equipment leading to major price discounting.”

In an effort to gain market penetration, SMT equipment vendors offer attractive prices and financial support packages and lease out SMT equipment with return/upgrade options. SMT equipment vendors have had to maintain a balance between reducing costs for customers, new product development, effective customer support and providing efficient after-sales service midst severe competition.

Chinese Surface Mount Technology (SMT) Equipment Markets is part of the Industrial Automation & Process Control subscription, which also includes research in the following markets: World Specialty Laser Systems Markets, European Soft PLCs Market and European SCADA Versus DCS Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

Chinese Surface Mount Technology (SMT) Equipment Markets
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Chinese Surface Mount Technology Equipment Market Rapidly Developing

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Publisher Contact: Tori Foster 
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