Price hikes spreading to analog chips? ADI rumored to raise prices
According to an online rumor purported to be an ADI price increase letter content, "In order to sustainably maintain security of supply of older materials for our customers, ADI will be increasing the price of some older material products to offset the incremental costs incurred by the company to maintain production of these older parts."
The content of the letter indicates that the increase is in the range of 10-20 percent, including new orders and existing booking requirements. The company also gave a distinction between products produced in volume over different time periods, such as an increase of about 15% for 20 years of volume production and 20% for 25-30 years of volume production.
At present, it seems that ADI is part of the old models of products, not a comprehensive price increase. The outside world also assessed that ADI price or to reflect the cost, but also hope to promote customers have a higher willingness to adopt new products.
It is worth mentioning that ADI had revealed on the conference call in November, the company's new products design-wins (test samples successfully obtained customer orders) and more mature products will continue to grow with the ring, optimistic about the industry's current situation and the future of the pricing environment. It is reported that ADI is the world's second largest analog chip suppliers, market share second only to Texas Instruments (TI).
Industry insiders pointed out that the price increase also reflects the optimism of ADI on the rebound of industrial demand. On the one hand, the analog chip life cycle is relatively long, the chip factory often in order to promote, popularize new products and other applications, will be the old product price increases, ADI by increasing the price of old products, to promote the customer for new products; on the other hand, it also reveals the downstream demand rebound, confidence in the future growth of performance.
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