I'm going to guess that CUBE's market share in DVD chips will decrease, but the demand will increase even more, so the net will be that CUBE sells more chips despite a diminshing market share. The reason I believe that market share will decrease is that the big players like Sony, Mitsubishi, etc. tend to develop their own chips for use in their players, even if they lag behind in the technology a bit. Plus, other manufacturers will enter the marketplace to grab a piece of the big DVD pie. As we get more and more "el cheapo" DVD players rolling out from smaller manufacturers, these guys have to buy chips, and CUBE is a likely source.
And CUBE has a lock right now on the codec market, nobody else has a single chip codec that can compete right now. That too will change, but again, the demand is about to skyrocket. |
