Dell'Oro: Set-top box Sales Decline in Q1

the worldwide set-top box market contracted 6 percent sequentially to $3.5 billion in the first quarter of this year, according to a newly published report from Dell'Oro Group. The market was up 9 percent, however, compared to the year-ago quarter. The quarter's sequential decline was due to double-digit percent drop in the satellite STB market, which reflected seasonal weakness.


In 1Q08, HD shipments for the first time surpassed standard definition shipments as consumers are increasingly choosing HD services and service providers are deploying HD capable set-tops ahead of demand," Collins added.


Echostar, which was recently spun off from Dish Network, edged out Thomson in the first quarter for the top position in terms of unit shipments. Seasonality also impacted the results of the combined Pace and Philips, according to the report.


"The market for pay-TV services continues to see strong growth and competition, and these factors will continue to translate into healthy STB sales which are boosted by increasing volumes and average selling prices," commented Greg Collins, Vice President at Dell'Oro Group. "Prices continue to rise as high definition (HD) and digital video recorder (DVR) functionality becomes a higher percentage of the overall product mix.http://www.DellOro.com