“In recent years, with few exceptions, technology companies have appeared to be in a rut from which they couldn’t extricate themselves,” Arik Hesseldahl writes for BusinessWeek. “But there was faster growth to be found in the tech sector in 2006—hot, even heyday-like growth in certain places. You just had to know where to find it and how to grab it, as the 50 companies that made our ranking of the Tech Hot Growth firms show. Measured by sales growth, total return to shareholders, return on equity, and overall sales, the companies on the list make for an enlightening study of the new technology economy, circa 2006.”
“Apple Computer (AAPL), No. 2 on the Tech Hot Growth ranking, is the prime example of a company that has created its own opportunities. Its breakthrough innovation in digital music has made it an international icon and propelled sales up 39% over the past 12 months, to $19.3 billion. The company sold 39 million iPods in the 2006 fiscal year, as well as 5 million Macintosh computers,” Hesseldahl writes.
No. 1 on BusinessWeek’s list is Amkor Technology: Getting a computer chip from its original manufacturer to its final destination is a complicated process. Amkor handles some of the unglamorous but necessary—and costly—steps in the middle. When a silicon wafer the size of a dinner plate arrives from Intel at an Amkor plant, Amkor cuts the wafer into single chips, places it in a casing called a package, and essentially gets it ready for insertion on a PC motherboard. Then it tests the chip to make sure it’s working properly. Sales for the 12 months ended Sept. 30 surged 41%, to nearly $2.7 billion, with $165 million in profits.
Full article here.
We’re No. 2! We’re No. 2!
Interesting, AT&T made the top 10 by acquiring Cingular (SBC) – I’m sure their profits are largely due to outrageous cell plan fees. Once the Apple iPod phone breaks through the monopolies, combined with the rise of VOIP, their story will change. I’ll be surprised to see any telcoms in the top 10 next year.
“who… does… number 2… work for?”
– Austin Powers
What is wrong with Intel that they have to outsource the cutting of their chips to the tune of $2.7 billion?
Tommy Boy-
Same reason most companies outsourced their PCBs assembly some 17 years ago-
You don’t invest your capital in mfg. processes that are common across multiple companies & products. Especially when they are subject to short production equipment lifecycles.
Economies of scale my friend.
Thanks, Nick. Now I have clean my laptop screen off – I laughed so hard I spit my dinner all over it!
For obvious reasons, the Zune is a number two. <splort>
Number 2 behind a company that I’ve never heard about before. That’s cool…
AT&T did not acquire Cingular.
SBC owned Cingular and sometime ago acquired AT&T Wireless, which became part of Cingular. A while later, SBC then bought what was left of the original AT&T’s landline business.
Then the execs at SBC figured the AT&T brand-name was too valuable to put away to pasture, and decided to change the name of the company from SBC to AT&T. The new AT&T is not the same company as the old AT&T, in other words, but is just a renaming of the SBC business.
Who are you?
The new Number 2.
Who is Number 1?
Where is number six????
Cingular is a joint venture between SBC(now at&t) and Bellsouth. Once at&t gets the go ahead from the government it will completely take over Bellsouth. Then Cingular will once again become the wireless wing of at&t. Aren’t you glad the government split up at&t so that it could eventually come back together? Only two major players now Verizon and at&t (there is quest too but it’s only a matter of time until they go under and one of these two buys them out)