European demand is already at a good level. The annual demand growth is estimated to be between 30 and 100% annually, depending on the segment. In the Asian market the demand level currently is low, but the growth is expected to be even higher than in Europe. In both Europe and Asia the growth will be fastest during the next couple of years, after which the growth is likely to slow down. In any case, the consensus among analysts is that the growth rates will be positive for several years to come.
The high-end segments in both the consumer and company segments play a major role in the first years. Later on, with market penetration, the low-end segments might well dominate the sales volumes.
Because PDAs are still…show more content… Therefore, new advanced products brought to markets now might turn out to be very successful in the long run. If companies decide to launch new products, they have to be sure that their products are not too close to each other in terms of features. Similarity causes the products to cannibalize each other.
The financial market is turning cautious and more risk averse. The interest rates for start-ups are skyrocketing to two-digit figures. Companies are hit as soon as they run out of equity.
The adoption of PDAs is still accelerating in both market areas. Most analysts forecast that the stage of rapid growth is going to last for at least a couple of years, but later on the proportional growth will probably decrease. In addition, Asian growth figures are estimated to be constantly bigger than the European ones. PDA markets in Asia have undergone significant structural changes as low-end segments have gained a foothold in a relatively short period. What is more, it seems that the growth of low-end segments is mainly attributable to the areas associated with the lowest standard of living in the world.
Companies are able to produce the same products they offered last year at a lower cost. This is partly due to economies of scale. In addition, lower costs are a result of knowledge improvements, i.e. as competence indices increase the