Electronic Design

Scaling Designs To Meet Price Points

The more sophisticated the effect, the more likely it is to be limited to big-ticket systems, at least for some months after product introduction. OEMs need to differentiate among their product lines and preserve margins at the high end. In the home-theater and the AV-receiver markets, products that sell for less than $400 to $500 represent 80% of the volume. So to bring ASPs up and preserve margins, OEMs try to leverage their common platforms across the product range by introducing new higher-end features, allowing them to migrate downward over time. Beyond scaling, DSP vendors address time-to-market issues with new design tools.

TAGS: Digital ICs
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