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Power-One Inc. Message Board

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  • chasjohn02 chasjohn02 Mar 2, 2011 1:13 PM Flag

    If there's a compromise, the stock should fly...

    It's nice to have a board where knowledgeable people can exchange info and not insults. Most of the discussion surrounding PWER seems to be based on an overall growth in solar installation activity. Iam more interested in PWER's ability to grow market share against its competition. Has anyone done an analysis that addresses PWER potential for gaining market share from its major competitors? Factors would be technology and price.

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    • Technology is certainly important, but I believe SMA, Siemens, GE, ABB, etc. all have the similar technology. Today, inverters have reached the efficiency of 98% to 99%, 100% does not exist, because inverters themselves consume electrity.
      Price is also an important matter, which pwer enjoys competitive edge at present. Its products are sold at 3% below the market price. I guess that is the main reason it keeps gaining market share. Whether or not it is able to continue to maintain this edge is yet to be seen. This industry is not capex intensive but labour intense, and therefore, human resource management, marketing strategies, etc. are all very important. For the world No. 1 inverter maker SMA, its biggest challenge is human resource management when it grew from a few hundred employees to around 6000 employees in a few years and its largest expenditure is the salaries and bonus to its employees. Although this industry is labour intensive, but it is unlike other industries, such as solar panel making which faces China cheap labour competition. Inverters are traditionally not the products for export, because of its intensive after sale maintenance service requirement.