Tuesday, November 15, 2011

Needham: Aptina, Toshiba, Samsung Take Market Share from Omnivision

Forbes, Street Insider: Needham & Company analyst Rajvindra Gill writes that his checks find that Omnivision has lost "a considerable share" of the non-Apple market to Samsung, Toshiba and Aptina. The analyst says that Omnivision has two long-term challenges:

  • Gross margin compression from increasing pricing pressure.
  • Accelerating competition in the 8 MP non-Apple smartphone market.

As for gross margins, Gill writes that he cut his FY 2012 estimate to 28.4% from 30.1%, with FY 2013 now estimated at 26.6%, down from 30.4%. The analyst notes that in the current quarter he expects OmniVision to take an inventory charge due to "poor yields" and excess wafers at TSMC.

The analyst writes: "While OVTI initially had the technological lead in backside illumination (BSI) for over two years, we believe that gap has narrowed significantly due to OVTI’s internal design/production issues (i.e. 8830 sensor) and competitors catching up."
Posted by Vladimir Koifman at 17:33

8 comments:

  1. AnonymousNovember 16, 2011 at 5:38 AM

    what do you think abt ST Micro imaging business ? based on financial report, last qtr net revenues is 152M USD vs 276M USD OVTI

    ReplyDelete
  2. AnonymousNovember 16, 2011 at 5:50 AM

    OV is also facing a class action for not disclosing material information and inside trading from minority stockholders.
    The officers were alleged to have dumped $12 million of stock before price dropped this Aug, which is definitely not a brilliant move.

    ReplyDelete
  3. Vladimir KoifmanNovember 16, 2011 at 2:12 PM

    @ "based on financial report, last qtr net revenues is 152M USD"

    Where did you see ST's sales numbers?

    ReplyDelete
  4. Vladimir KoifmanNovember 16, 2011 at 2:54 PM

    Nevermind, I found it in SEC filing.

    ReplyDelete
  5. AnonymousNovember 16, 2011 at 7:59 PM

    module has higher asp than sensor only

    ReplyDelete
  6. AnonymousNovember 17, 2011 at 3:34 AM

    But OV also sell the complete module/solution to customer? Only in case of omnivision they dont make it themself but subcon.

    Customer/Apple will pay only to OV, not subcon.. So ASP should be same if not higher?

    ReplyDelete
  7. AnonymousNovember 18, 2011 at 5:25 AM

    Isnt this Needham guy the same one who went into 8M array size details to keep proving his point that OV is in iphone4s?
    I am surprised - do they have data to show whose data is more reliable?

    ReplyDelete
  8. Vladimir KoifmanNovember 18, 2011 at 8:48 AM

    If you mean this:

    http://image-sensors-world.blogspot.com/2011/10/oppenheimer-research-speculates-that.html

    - it was not Needham.

    ReplyDelete

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