Slower growth seen for fiberoptic connector market

A research study by KMI (Newport, RI) forecasts that the US market for fiberoptic connectors will grow from sales of about $130 million in 1994 to $200 million in 1999. The revenue figures represent a rise of only 11%, despite the 21% compound annual growth in the number of fiberoptic connectors sold nationally. John Kessler, president of KMI, explained that the stee¥decline in pricing is due to largescale competitiontoo many suppliers in a limited market. Other factors such as more efficien

A research study by KMI (Newport, RI) forecasts that the US market for fiberoptic connectors will grow from sales of about $130 million in 1994 to $200 million in 1999. The revenue figures represent a rise of only 11%, despite the 21% compound annual growth in the number of fiberoptic connectors sold nationally. John Kessler, president of KMI, explained that the stee¥decline in pricing is due to largescale competitiontoo many suppliers in a limited market. Other factors such as more efficient connectorization techniques and switching from expensive biconic to less expensive SCtype connectors are playing a role. Price declines, nearly 30% from 1993 to 1995, have particularly affected the profitability of singlemode suppliers, according to the report.

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