The Internet as primary growth driver Recent industry surveys gauging current and future demand for a plethora of equipment and components indicate why the Internet has everyone excited. And if you think Internet activity is confined to Europe or the United States, think again. Yes, China is a poor country. But its economy is opening up and its vast population suggests that equipment sales will eventually skyrocket. No question that the communications market is being fueled by the Internet, says Farzad Zarrinfar, vice president of product marketing at Altera Corp., a San Jose maker of PLDs used in telecom and datacom devices.
Cell phones are another contributor to the big gains in component sales.
As Salomon Smith Barney's Joseph said, everything portable's really hot. It's easy to understand why. There are more than 86 million wireless phones being used by roughly one-third of the U.S. population, according to the Cellular Telecommunications Industry Association. It's a clear example of a trend with nowhere to go but up, at least for a while. This market's an island unto itself, said Needham's Scovel.