Potential use of InvenSense’ Sensors in the iPhone Could be the Boost its Stock Needs
Navi Mumbai, Maharashtra -- (SBWIRE) -- 09/24/2013 -- San Jose, California-headquartered InvenSense has been in the news recently with rumours circulating around that its sensors could be incorporated into the new lineup of Apple’s iPhone 5C and 5S devices.
At Apple’s launch event for the iPhone 5S, Philip Schiller, the SVP for Worldwide Marketing had noted that they’ve added a new motion co-processor in the iPhone, called the M7 which works alongside the A7 chip. The main function of it would be to take advantage of all sensors while continually measuring data coming from them, without having to wake up the A7 chip, measuring the accelerometer, the gyroscope and a compass.
InvenSense has reported that for Q1, its 10% customers included Samsung Electronics, Sharp Electronics and Sony Mobile. Marketwise for Q1, smartphones and tablets held a 77% share with gaming 3% and all other segments including imaging held a 20% share. Thus clearly, the growth in mobile devices automatically would translate into growth for InvenSense in the long run.
CEO Behrooz Abdi had stated at the first quarter conference that based on trends they see and visibility into significant growth ahead in the current quarter they had decided to invest ahead in R&D and ecosystem development last quarter so as to accelerate the pace of execution on several products which they have planned to introduce in coming quarters.
Currently they are embroiled in a legal battle with the Swiss firm STMicroelectronics over MEMS technology. Apple’s iPad and iPhone have both used STMicroelectronics components in the past. Commenting on the legal dispute, InvenSense CFO Alan Krock said that they were disappointed with the way STMicroelectronics resolved its concerns and that “ST has created for itself potentially significant financial exposure from the use of InvenSense intellectual property and product sold and volumes to the market today including ST's own largest consumer electronics customers”.
At INVN’s Q1 earnings call, while Alan Krock didn’t mention Apple specifically as a customer, he did mention that they have “broader opportunities at new customers and in new applications such as optical image stabilization”. Interestingly, Apple has for the first time gone ahead and introduced auto image stabilization in its new iPhone. Linking these two observations could be anyone’s guess at this point.
Confirmation of InvenSense sensors in its devices would only come once Apple actually starts selling the new iPhones, which is expected to begin from September 20th.
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