Home > APAC sales drop for Altium: what does it mean?

APAC sales drop for Altium: what does it mean?

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article image Altium's shrinking sales in the APAC region may indicate a lack of focus and strategy on their part, or a larger deficiency in the regional electronics design market.

Altium recently announced its financial results for the quarter ending 31 March 2014, showing double-digit sales drops in the APAC region even as it experiences growth and recovery in the rest of the world.

In the three months, the electronics design software company saw global sales amounting to US$18.2 million, representing an increase of 8 percent over the same period in 2013.

Analysts agree that the company is in a strong position -- it is certainly capitalising on its base in China, with the Greater China market seeing a massive 31% growth in sales over the same quarter in 2013.

The other area of growth for Altium was in the Europe, Middle East and Africa (EMEA) region, which experienced a 17% sales growth.

During the latter part of 2013, Altium moved to an indirect sales model in the USA, which had a negative impact on the sales figures in that region. The latest report show the company is recovering from the effects of that move, with sales in the Americas down by 1 percent compared to the same quarter a year ago.

According to Altium CEO Aram Mirkazemi, the company expects this recovery to be sustained for the rest of the 2013/14 financial year.

One thing Altium executives are quiet about is the continuing drop in sales figures for the rest of the Asia Pacific market (excluding China) -- the report indicates sales dropped by 18% in the quarter compared to same period in 2013.

This drop may indicate a move by APAC-based electronics design firms away from Altium's solutions as the company continues to shift focus away from the region to the high growth centres of China, the US and Europe.

 Certainly there are a number of other electronics design solutions out there which remain popular with Australian design firms who do not need the latest bells and whistles from Altium.

However, those same figures might also indicate a general shortage of electronics design work happening in the APAC region, even as the rest of the world gears up for growth driven by the Internet of Things and wearables trends.

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