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Infineon Wireless Strengthens
Subsidiary Qimonda Spoiling Bottom Line
Boston, MA - 7 May 2009 - The Strategy Analytics Handset Component Technologies service report, "Baseband Processor Profile: Infineon Wireless Strengthens but is Over-Shadowed by Qimonda," analyzes Infineon's cellular baseband strategy, product portfolio, customer relationships, strengths and weaknesses.
Infineon realized a billion dollars in CY2008 revenue. The company has baseband and RF relationships with the top seven mobile handset vendors, a significant improvement over its position in 2005 when it had just one baseband customer. This report reveals that Infineon is positioning itself as a low-end baseband supplier to 2G, 2.5G and 3G markets while leveraging its RF transceivers and power management expertise. However, the company continues to struggle due to its DRAM memory subsidiary, Qimonda, which could potentially jeopardize Infineon's long-term sustainability and make it vulnerable to takeover.
Stuart Robinson, Director of the Handset Component Technologies service at Strategy Analytics, commented, "Strategy Analytics believes that Infineon is differentiating itself from the crowded GSM chipset market by providing highly integrated and low-cost solutions. To date, however, the company currently lacks a complete product portfolio and has under-invested in multimedia, connectivity and application processor solutions."
Sravan Kundojjala, Analyst, adds, "Strategy Analytics believes that Infineon could be a good partner to companies looking for RF expertise and baseband customer relationships."
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