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
June 23, 2005

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.

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