SevePC

Sigma Designs Should Fall on Lost Blu-ray Customer

This shouldn't be a big surprise to anyone. The company has talked at length about loss of market share this year which necessarily implies that they will lose some customer relationships for a while. Panasonic is now making their own chip and other Japanese manufacturers are getting more aggressive.

Sigma has already stated that their goal is to control about 1/3 of the Blu-Ray market going forward. Next year when their new chip ships in volume the surprise may be that ther market share approaches 40%. But in my mind, this would be pretty decent given the enormous size of the market and the sophisticatio of their competition. How many companies can go one-on-one against Japanese electronics companies and still come out with 30% to 40% share?

No question that they fumbled the ball here getting the new design out in time, but remember this is a four quarter game and the next generation chip will have a very competitive feature set.