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Apple iPhone SE Teardown: Qualcomm, Qorvo Lead But Skyworks Gains

Chipmakers Qualcomm ( QCOM ) and Qorvo ( QRVO ) topped content in Apple ’s ( AAPL ) newly launched iPhone SE, but Skyworks Solutions ( SWKS ) and Texas Instruments ( TXN ) gained new chips in the 4-inch smartphone, a Chipworks teardown found Thursday. Apple’s iPhone SE is “the most powerful 4-inch phone ever,” the smartphone giant says. It was unveiled March 21 and began shipping today, the same day Tesla Motors ( TSLA ) began taking orders for its less expensive Model 3 . Researchers with Chipworks and iFixit classified the iPhone SE, the first to not have a number in its name, as the iPhone 6S squeezed into the iPhone 5S body. “There are very few new parts, but that hardly means there is no innovation,” Chipworks wrote. But Apple engaged in “serious economical re-use” of many radio-frequency (RF) chips, excepting the Skyworks and Texas Instruments additions. New to the iPhone SE, Skyworks gained a power amplifier module and Texas Instruments earned a power management chip. Privately-held Toshiba and Epcos made new appearances with a flash-memory chip and an antenna switch module. A new power management chip could also be an Apple-Dialog Semiconductor mash-up, Chipworks wrote. Qualcomm and Qorvo each have four chips in the phone, leading Skyworks, which contributed three iPhone SE chips. Broadcom ( AVGO ) and Cirrus Logic ( CRUS ) each supplied two chips. Texas Instruments, NXP Semiconductor ( NXPI ) and InvenSense ( INVN ) all brought one apiece to the table. The A9 processor was supplied by Taiwan Semiconductor Manufacturing ( TSM ), in this particular phone. But Apple dual-sourced the A9 in the iPhone 6S, splitting share between Taiwan Semiconductor and Samsung. Samsung reportedly has since said that it would yield the A10 processor to Taiwan Semiconductor. The A10 processor is scheduled to make its debut in the iPhone 7, likely to be launched in September.

Google Self-Driving Car Chief Urges Congress To OK Safety Tech

The chief of self-driving car development at Google told a U.S. Senate panel Tuesday that “Congress has a huge opportunity to help ensure that self-driving cars can be safely deployed at scale,” as the  Alphabet ( GOOGL ) subsidiary and others push the pedal to the metal on the fast-emerging technology. Chris Urmson, director of the self-driving car program at Google X, was among those testifying at a hearing titled “Hands Off: The Future of Self-Driving Cars,” convened by U.S. Sen. John Thune, R.-S.D., chairman of the Senate Committee on Commerce, Science and Transportation. “We need cars that are fully self-driving,” Urmson said. “The car must be designed to do all the work, so the occupants are not expected to take control of the vehicle at any time.” Urmson pointed to National Highway Traffic Safety Administration estimates that “38,000 people were killed on America’s roads last year, and 94% of accidents involve human error. Self-driving cars can help us change that. Not only could our roads be a lot safer, but self-driving cars could bring everyday destinations and new opportunities within reach of those who might otherwise be excluded from their inability to drive a car.” Google is testing self-driving prototype vehicles in three states, driving 1.4 million miles “in autonomous mode” over the past several years, Urmson said. Senator Urges Rethink To Boost Self-Driving Cars Sen. Thune, in comments before the testimony by Urmson and others, sounded ready to act. He urged federal and state governments to rethink how they regulate and license vehicles for the future. “We must ensure that the United States remains the cradle of innovation and that we continue to lead the way in the development and deployment of automated vehicles,” Thune said. “In addition, questions regarding liability, insurance, privacy, security and infrastructure need answers. These aren’t small things, but none of them is insurmountable.” He pointed to the technology’s ability to not only clear up gridlock, but also improve communities. “To implement this future, we need to challenge ourselves to overcome the 20th century conception of what a car must have … and even the concept of a licensed human driver. Because so much is possible, we must be careful not to stymie innovation because of a lack of imagination,” he said. But the technology is facing a patchwork of state regulations. “Over the past two years, 23 states have introduced 53 pieces of legislation that affect autonomous vehicles, all of which include differ approaches and concepts,” Google’s Urmson said. The hearing comes a month after one of Google’s self-driving cars hit a municipal bus in California. Google has said new software changes will avoid future incidents, but at least one speaker Tuesday urged caution. Mary Louise Cummings, director of the Humans and Autonomy Lab and Duke Robotics at Duke University, said there remain concerns over the cars’ sensors not working properly in some areas. Moreover, she said, “we know people will try to hack into these systems.” And the technology, while developing fast, remains relatively untested. She said that while Google’s cars have driven those 1.4 million miles the past several years, “New York cabs drive 1.4 million miles” every day. Still, there is no question automakers and tech firms are fast heading down the road toward the day they can start selling vehicles that can drive themselves.  Apple ( AAPL ) is among those in the car game, it’s been widely reported, though the company hasn’t confirmed this. NXP Semiconductors ( NXPI ), Mobileye ( MBLY ), Nvidia ( NVDA ) and Ambarella ( AMBA ), among others, are partnering with automakers to develop chips and technology for self-driving cars and sophisticated safety systems in such cars. California’s Proposed Law Seen As Detour For Self-Driving Cars But Google and others have complained about laws impeding progress. In December, California proposed draft rules banning autonomous vehicles that aren’t equipped with human controls and don’t have a licensed human driver aboard. In January, U.S. Transportation Secretary Anthony Foxx introduced the Obama administration’s $4 billion, 10-year plan to get self-driving cars onto U.S. roads in “corridors” throughout the country. The NHTSA said this year that it may set aside some vehicle safety rules to allow more driverless cars to operate on U.S. roads, as part of a broader effort to speed up development of self-driving vehicles. On Friday, the NHTSA said in a report that there are significant legal hurdles to allowing fully autonomous vehicles without steering wheels, according to Reuters. The federal agency will write guidelines for self-driving cars within six months, Foxx said in January. Last month, the agency said the artificial intelligence system piloting a self-driving Google car could be considered the driver under federal law.  

Apple Supplier Broadcom Rockets On Post-Merger Q1 Earnings Beat

Broadcom ( AVGO ) stock rocketed late Thursday after the Apple ( AAPL ) chip supplier topped Wall Street’s fiscal Q1 earnings-per-share expectations by 11 cents and issued Q2 guidance that edged analyst forecasts. Broadcom CEO Hock Tan hinted that Broadcom is already ramping for the likely September release of Apple’s iPhone 7. He acknowledged that wireless demand declined 15% sequentially in Q1 on typical seasonality haunting “our North American customer” (i.e. Apple). Tan isn’t alone. Last month, fellow Apple supplier Qorvo ( QRVO ) guided to weak Q4 sales, tugging Skyworks Solutions ( SWKS ), NXP Semiconductors ( NXPI ) and Cirrus Logic ( CRUS ) into a hole. But Tan expects Q1 to be the year’s “trough.” After-hours Thursday, Broadcom stock lifted 7% on the fiscal Q1 beat, which followed the finalized acquisition of Broadcom by the former Avago Technologies on Feb. 1. The Q1 results relate solely to the former Avago, according to the company release, as the quarter ended Jan. 31, just before the deal was finalized. Broadcom stock closed up a fraction during the regular session. Apple Seasonality Pains Ebb For fiscal Q1, Broadcom reported non-GAAP figures of $2.41 earnings per share on $1.78 billion in sales, up 15% and 8%, respectively, vs. the year-earlier quarter. Both measures topped the consensus of 30 analysts polled by Thomson Reuters for $2.30 and $1.75 billion. During Q1, wired and enterprise storage sales grew 2% and 6%, respectively, on a sequential basis. Industrial sales fell 10% sequentially, trailing the 15% decline in wireless sales, Tan told analysts on the conference call. “Last year, we had unusually high demand in Q1 from a North American customer which offset normal seasonality,” he said. “This year, however — as we all know — seasonality returned and there was a product life cycle demand decline from that specific customer.” This week IDC issued a smartphone forecast that sees iPhone shipments declining 0.1% this year as smartphones running Alphabet ‘s ( GOOGL ) Android operating system rise 7.6%. Tan said on Broadcom’s conference call that he expects weak smartphone demand to reverse in the second half of 2016. Enterprise storage comprises 38% of the former Avago’s total Q1 revenue — the largest segment and leading wireless sales which contributed 32% to the total pot. But, the wired segment is growing and during the April quarter will bring in 55% of sales, Tan said. Wired Sales To Grow The midpoint of current-quarter guidance for $3.55 billion in sales on a non-GAAP basis, plus or minus $75 million, nearly touched the consensus model for $3.57 billion. Current-quarter sales views reflect the combined Avago-Broadcom company. During Q2, wireless and enterprise storage sales will shrink as chunks of total sales to 23% and 17%, respectively, Tan said. Still, all eyes are on Broadcom’s “North American customer” which increased the chipmaker’s RF content in its upcoming flagship smartphone, he said. “We are already pre-building significant quantities of our RF chips” for the second-half of 2016 ramp, he said. “We increase our RF content by 20% year after year in this high-end smartphone market.” But Tan expects greater strength in the wired segment where Broadcom expects to add new products. The segment will also benefit from increased enterprise demand. In May 2015, the former Avago announced a $37 billion bid for fellow Apple supplier Broadcom, kicking off a record-busting year of consolidation in the semiconductor industry amid macro weakness, slowing growth and ramping costs. Post-merger, the company retained Broadcom’s name and Avago’s ticker symbol “AVGO.” Broadcom is one of two chipmakers on the IBD 50 list of top-rated growth stocks. The other is Tesla Motors ( TSLA ) partner  Nvidia ( NVDA ).