Prices for analog-TV handset chips to continue to fall

Prices of analog TV handset chips are expected to fall below US$1.50 per unit in the near future due to increasing availability of the chip solutions, especially after MediaTek launched its own TV chips, according to industry sources.

Quotes for analog TV handset chips are currently floating in a range from US$1.50-1.80 per chip compared to US$4-5 1-2 years ago, the sources noted.

Increasing market size has helped push down chip prices, said the sources, noting that monthly shipments of analog TV handset chips are currently running at 4-5 million units. MediaTek's launch of its M5192 analog TV chip has also intensified price competition in the market, the sources commented.

In other news, the number of analog TV handset users is expected to top 300 million in 2013, indicating the market is still lucrative for chipset vendors, the sources added.