Higher priced semiconductors in Blu-ray 'an opportunity'

A new report by the market research firm In-Stat noted that semiconductors used in Blu-ray players are more expensive than their counterparts in DVD equipment, which could mean a new opportunity for a revenue boost for manufacturers.

Based on the company's predictions, the DVD player market could plunge 40 per cent between 2009 and 2013 to be worth £355 million.

Michelle Abraham, an analyst at In-Stat, pointed out that the market share may still currently favour DVDs, but a significant change has occurred in the past year.

She said: "Semiconductors for DVD equipment continue to lead in unit volume. However, the higher priced semiconductors in Blu-ray equipment propelled Blu-Ray semiconductor revenue ahead of DVD for the first time in 2009."

The firm estimated that Blu-ray semiconductors could account for almost three-quarters of the combined market by 2013, with such components poised to drop in price by about 70 per cent during the same time period.

This week, In-Stat claimed that the emergence of the iPad and other tablet computers is also an opportunity for the semiconductor manufacturing sector.