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."


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

  2. 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.

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

    Where did you see ST's sales numbers?

  4. module has higher asp than sensor only

  5. 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?

  6. 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?

  7. If you mean this:


    - it was not Needham.


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