Wireless handset manufacturers, and smartphone OEM's in particular, are one of Data I/O's core customer groups. Because the larger files in smartphones require more programming time in the manufacturing process, rapid growth in the number of units shipped is a positive indicator for Data I/O.
The rapid ramp up in smart phones globally is old news. An interesting Fortune Magazine article, however, predicts a significant drop in smart phone component and retail prices in 2011 could trigger explosive growth in the number of ANDROID phones shipped next year.
In a recent investor presentation Fred Hume pointed out that steady growth (ie 20% per year) in any customer segment will tend to keep DAIO revenues near current levels. Exponential growth is what is required to accelerate demand for flash programming equipment and solutions in any given customer segment.
The Fortune author appears to be predicting exponential growth in 2011. DAIO investors hope he is right.