Competition from Intel?

[admin]

Here are some of these expressed fears about competition from Intel (and Luxtera):

I think it's fairly well know that Intel has been tanking price on 100G PSM4 with their silicon photonics product. They are expected to have a CDWM4 product this month. Luxtera also has a good silicon photonics line that is used at both MS and AMZN. My understanding is traditional products (AAOI) will have trouble competing with silicon photonics due to power consumption and the resulting operating cost over a 4 year life. Silicon photonics uses one laser vs 4 lasers for an AAOI transceiver. It is a higher power laser, but the power consumption is still significantly less. I believe this is why you see AAOI emphasizing CWDM4 these days. The PSM4 market is even more price aggressive. But if Intel and Luxtera are able to make a CWDM4 product successfully it will cause the same issues. More pricing pressure. I think the pressure AAOI is already seeing at 100G is a symptom of the amount of competition in the market. I think it only gets worse.

Applied Optoelectronics down after analyst price erosion comments - Applied Optoelectronics, Inc. (NASDAQ:AAOI) | Seeking Alpha