Tag Archives: txn

Amazon Tap Casts Apple Suppliers; Texas Instruments Leads Echo Dot

Amazon.com ( AMZN ) tapped Texas Instruments ( TXN ) to lead its “hockey-puck-sized” Echo Dot Alexa-infused speaker, and incorporated Apple ( AAPL ) suppliers Broadcom ( AVGO ) and NXP Semiconductors ( NXPI ) in its portable Tap stereo, iFixit teardowns show. But the teardowns did little to help chipmakers Thursday on Wall Street. Chip stocks were broadly down in afternoon trading on the stock market today , in conjunction with fractional dips for the major indexes. Texas Instruments won five chips — including a digital media processor —  inside the Echo Dot , but that total was skimmed down from eight chips inside the larger Echo . Also, Samsung succeeded SanDisk ( SNDK ) as the flash memory supplier. Echo Dot also features a DRAM (dynamic random-access memory) chip from Micron Technology ( MU ), apparently replacing a Samsung RAM chip in the Echo. Qualcomm ( QCOM ) re-won the Bluetooth function from the Echo. The smaller Echo Dot earned a six out of a best-possible 10 in its repairability rating, dropping from seven in the earlier Echo iteration. Amazon’s Tap won a seven out of 10. It’s Amazon’s first Alexa-equipped portable speaker vs. the Echo Dot and Echo, according to iFixit. Maxim Integrated Products ( MXIM ) topped the Tap with two chips — an audio codec and a power management chip. Texas Instruments supplied an amplifier. Apple suppliers Broadcom and NXP won a chip apiece — WiFi/Bluetooth and an applications processor, respectively. The device is powered by a lithium-ion cell, such as those used in Tesla Motors ( TSLA ) vehicles, iFixit notes. It provides for nine hours of music playback, according to Amazon, vs. the iPhone 6S Plus, which has “a battery with a similar output for a radically different job.”

Apple Suppliers Downgraded On ‘Modestly Lower’ iPhone Demand

Petering Apple ( AAPL ) and Samsung demand prodded a Raymond James analyst to downgrade suppliers NXP Semiconductors ( NXPI ), Qorvo ( QRVO ), Skyworks Solutions ( SWKS ) and others, even with the iPhone 7 launch expected in September. Apple suppliers broadly fell in morning trading on the stock market today . Radio-frequency chip companies Qorvo and Skyworks were down 2.6% and 2.2%, respectively, on the downgrade, tugging rival Broadcom ( AVGO ) down 1.3%. Maxim Integrated Products ( MXIM ) stock was down more than 1%, while Apple suppliers Analog Devices ( ADI ), NXP and Texas Instruments ( TXN ) stocks were all down roughly 1%. In all, Raymond James analyst Steven Smigie downgraded six semiconductor stocks to outperform from strong buy, citing likely in-line earnings and minimal upside to June guidance. Following a January drop in the stocks, the Philadelphia Stock Exchange Semiconductor Index has rebounded 20% since mid-February, Smigie wrote in a research report. Some stocks have run up 40%, he noted. But “with only modest signs that there is the potential for near-term upside to (earnings per share), and some signs of modest downside, we worry that shares have a limited upside, with reasonable downside risk,” he wrote. Confidence could improve in the seasonally stronger second half of 2016, when Apple typically launches its newest iPhone flagship. But “Apple is seeing modestly lower demand,” said Smigie, who questioned the likelihood of a positive June guide by Apple. He also noted some pain points for radio-frequency suppliers that have more than 45% exposure to Apple. “Even if the Apple guide is healthy, we think skepticism will remain until the summer when we start to get evidence of the iPhone 7 ramp and questions about iPhone SE cannibalizing other iPhone models get resolved,” he wrote. Bright Spot For Chip Outlook Samsung sales zoomed on its Galaxy S7 flagship, but pre-orders were likely influenced by free Gear VR (virtual reality) giveaways, Smigie wrote. Huawei, on the other hand, is a “bright spot” and recently guided to 120 million to 140 million units in 2016. The lion’s share of those units will be high-end smartphones, Huawei said. Outside mobile, PC and industrial results have been weak, offsetting some strength in the growing automotive and infotainment arenas — the latter being NXP’s bailiwick following its acquisition of Freescale Semiconductor. But even in the automotive segment, “we have heard concerns from a number of investors on subprime lending,” Smigie wrote. Until those fears level out, automotive-exposed semiconductors could face some headwinds. Respective estimates from industry trackers Gartner and IDC show the PC segment saw 9.6% and 11.5% year-over-year declines in Q1 shipments. And March industrial production fell 0.6% vs. expectations for a 0.1% decline, says Smigie. Smigie notes positively, “we still like many of the stories, however, so all else being equal, on a pullback we could look to get more aggressive again.”

Facebook’s Oculus Rift Loses Round 1 With Product Shipment Delays

Facebook ( FB ) lost its first game in the virtual reality field, as its Oculus VR unit announced that a shortage of parts will delay some shipments of its high-tech Rift headsets. The Rift goggles began shipping to more than 20 countries and regions one week ago. Oculus CEO Brendan Iribe acknowledged the delay in a tweet : “First set of Rifts are going out slower than we originally estimated, so we’re giving free shipping for all preorders, including international.” Facebook stock was down 3%, near 113, in early afternoon trading in the stock market today , though it was not clear if the market action was related to the shipment delays. Facebook has said Oculus will not be material to its bottom line this year. Deutsche Bank analyst Ross Sandler said in a research note Monday that Facebook’s first-quarter results “may come in light,” in what he described as a “potential growth reset.” Sandler maintained a buy rating on Facebook with a 145 price target. Oculus did not say how many Rift shipments were delayed or when the problem might be fixed. It said buyers hit with the delay will receive an update by April 12. Preorders for the $599 Oculus Rift headsets began in January. Facebook has not said how many orders it’s received. So far, 30 games are available for the Rift, with more than 100 games expected by year-end. Game prices range from $9.99 to $59.99. Facebook sees Oculus Rift as a  game changer , starting with games but soon extending to other areas such as sports events, as users put on the Rift goggles for deep-seated immersion. A dismantling of the Rift by iFixit showed the Oculus contained chips from STMicroelectronics ( STM ), Texas Instruments ( TXN ) and Cypress Semiconductor ( CY ). STMicroelectronics supplied the Rift with an ARM ( ARMH )-based microcontroller. Cypress supplies a hub controller, which allows for multiple USB-connected devices to be plugged in at once. Texas Instruments is supplying an LED driver, which controls for image brightness and grayscale. Image provided by Shutterstock .