LLTC » Topics » Market Diversity; Relative Pricing Stability

These excerpts taken from the LLTC 10-K filed Aug 25, 2008.
Market Diversity; Relative Pricing Stability.  Because of the varied applications for linear integrated circuits, manufacturers typically offer a greater variety of device types to a more diverse group of customers, who typically have smaller volume requirements per device. As a result, linear integrated circuit manufacturers are often less dependent upon particular products or customers; linear integrated circuit markets are generally more fragmented; and competition within those markets tends to be more diffused.

The Company believes that competition in the integrated linear market is particularly dependent upon performance, functional value, quality, reliability and service. As a result, linear integrated circuit pricing has generally been more stable than most digital circuit pricing.

Products and Markets

Linear Technology produces a wide range of products for a variety of customers and markets. The Company emphasizes standard products and multi-customer application specific products to address larger markets and to reduce the risk of dependency upon a single customer's requirements. The Company targets the high performance segment of the analog integrated circuit market. "High performance" may be characterized by higher precision, higher efficiency, lower noise, higher speed, more subsystem integration on a single chip and many other special features. The Company focuses virtually all of its design efforts on proprietary products, which at the time of introduction are original designs by the Company offering unique characteristics differentiating them from those offered by competitors.

Although the types and mix of linear products vary by application, the principal product categories are as follows:

Market Diversity; Relative Pricing
Stability
.  Because of the varied applications for linear
integrated circuits, manufacturers typically offer a greater variety of device
types to a more diverse group of customers, who typically have smaller volume
requirements per device. As a result, linear integrated circuit manufacturers
are often less dependent upon particular products or customers; linear
integrated circuit markets are generally more fragmented; and competition within
those markets tends to be more diffused.



The
Company believes that competition in the integrated linear market is
particularly dependent upon performance, functional value, quality, reliability
and service. As a result, linear integrated circuit pricing has generally been
more stable than most digital circuit pricing.



Products
and Markets



Linear
Technology produces a wide range of products for a variety of customers and
markets. The Company emphasizes standard products and multi-customer application
specific products to address larger markets and to reduce the risk of dependency
upon a single customer's requirements. The Company targets the high performance
segment of the analog integrated circuit market. "High performance" may be
characterized by higher precision, higher efficiency, lower noise, higher speed,
more subsystem integration on a single chip and many other special features. The
Company focuses virtually all of its design efforts on proprietary products,
which at the time of introduction are original designs by the Company offering
unique characteristics differentiating them from those offered by
competitors.



Although
the types and mix of linear products vary by application, the principal product
categories are as follows:



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Aug 25, 2008
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