Omnivision is Said to Cut Down Production

Market Watch: J.P.Morgan analyst said he believes OmniVision has cut back production and added he anticipates pressure on margins.

Update: Barron's presents a more detailed overview of J.P. Morgan’s Paul Coster sayings on Omnivision's business. He says that competition has increased, and that Omnivision has cut back production. He anticipates “incremental pressure on margins.”

Coster says the China-based handset market has “slowed significant” since the beginning of the July quarter due to the recent earthquake and some government restrictions on domestic handset sales ahead of the Olympics.