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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (2657)	2/12/2007 3:21:57 PM
From: Casaubon	Read Replies (1) \| Respond to of 20435

...gross margins will perpetually turn down and unit growth won't be enough to offset that. That shouldn't happen if there is widespread consumer acceptance of new product cycles. This technology is just now gaining a widespread foothold in device architectures. There is no reason to believe that new product introductions won't occur continuously, or that they wouldn't gain widespread acceptance. Faster data transfer networks will insure (and in fact drive) higher res imaging chips will be adopted for many years to come. Furthermore, new market opportunities offer massive growth potential in areas such as: toy, medical, security, and auto. I see absolutely no reason to predict this company will simply be selling commoditized low ASP image sensors. That is simply a bread and butter operation to pay the fixed overhead. And yes, you are correct; WFC introduction is nothing but good news. People don't get why, yet. I have touched on it here and don't feel the need to sermonize more. I don't really care what the numbers say this quarter. It's moot, really. There is huge market potential yet untapped. And yes, there will be competition along the way. PS I realize you weren't putting these thoughts down; just stating the case for the other side. I'm just saying, from my vantage, it doesn't make sense to think the company is just going to stagnate and wither.