Forbes presents "A Bleak Outlook for OmniVision":
The camera phone market is moving to 2 megapixels, and it looks like the companies winning the accounts are Micron and ST Microelectronics.
Still, in China, OmniVision has increasing competition from MediaTek in Taiwan, which has a 70% market share in China. And MediaTek has started bundling in with its products, imaging sensors from a company called PixArt, to the detriment of OmniVision.
The situation could get worse. Average selling prices for its products continue to fall due to a higher percentage of lower-end VGA chips which means that the company is not getting traction at higher resolution image sensors. Another poor sign--sales to equipment manufacturers have been falling.
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