TEO - Ready to go into Orbit!

As I have totally ZERO knowledge on ASICS vs all the rest I found an article that attempted to explain it….if this appears to experts on this BB as child stuff then pls ignore …but just remember some of us who do not work in the industry have very little working knowledge to start from and are trying to build this up…LOL……
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Given fact 1. the inexorable rise of the “chip set solutions” boys like dspfactory, csr, rfmd etc and IF they end up dominating everything at the moment

“chip set solutions are still the favourite choice of system manufacturers such as PC and computer peripheral companies….The main advantage of a chip set is that it offers a very fast time-to-market by cutting down the development time, with a guaranteed functionality and tested performance…. Today, Bluetooth chip sets are still the main solution for major system manufacturers.”

And

Gien fact 2. That there are high costs from asics developments…and that firms do not have expertise to do this anyway at the moment

“On the other hand, there is no incentive by the end product manufacturer to invest heavily in any in-house development. This is because it would be much more difficult to develop chip set solutions without the necessary Bluetooth know how or wireless system capability. “


Q1: Why on earth would teo bother to develop the asic product?

“This module is specifically aimed at manufacturers of Application-Specific Integrated Circuits (ASICs) wishing to imbed noise cancelling functionalities as hardware-assist on any voice-related devices for Telephony, GSM, TETRA, DECT, Bluetooth and hearing aid markets. “ teo rns

Q2: and why would teo believe that the asic bluetooth markets etc can be so large?

“Masoud Ahmadi, Managing Director, Tecteon plc, commented: "This is another important step in the commercialisation of our technology. The market for this new product is very large indeed, with 100s of millions of devices sold worldwide annually. Initial evaluation trials by potential customers will commence shortly." Teo rns

As I know so little on these things I chanced on this article that made the pros/cons of the “chipset provider” approach vs the “asic approach” a bit clearer…


The answer it seems from this article is:
1. When a market is brand new like bluetooth none of the manufacturers know how big volumes might be so cannot afford to sink in large fixed costs for tooling etc and will payer higher variable costs for a prepackaged solution like csr…..this is business common sense
2. As the market matures volumes become known with far greater certainty and more rivals exists so profit margins are under threat - firms instead focus to reduce their cost bases via cheaper components… based on more certain demand levels firms then have a strong business case for higher fixed costs investments in production line tooling using asics..
3. Whilst the bluetooth market may be a bit away from maturing demonstrated by the strong growth in dspfactory/csr sales in the prepackaged (non asic) sector a time will come when this will change and some of the big boys will inexorably move away to asics imacting the likes of csr, dspfactory
4. In the mature telephone products market including DECT that has been around for years and years the markets have already matured and asics dominate over prepackaged solutions for the costs reasons above….hence why you do not see dspfactory offering a DECT device..

So for the twin reasons of having a route to market in DECT and mainstream telco phone equipment NOW and broaden their sales and cover the risks that some bluetooth firms may already be itching to move away from prepackaged csr/dspfactory type approaches to asics to gain a cost edge Teo simply had to implement this product….

Taking the time to understand these very basic facts supports my confidence that teo sales teams have a very firm grip on current events in the market….subject to of course some positive results from the “Initial evaluation trials by potential customers will commence shortly."
Tradx as you know this stuff standing on your head….am I that far away with my comments above?
Imvho dyor etc