Friday, July 31, 2020

One Investor's View on Sony CIS Business

Forbes contributor Stephen McBride publishes his view on Sony CIS business:

"The growth in sensor sales over the past three years has been nothing short of remarkable. This year Sony will generate more profits from imaging than any of its other business lines. Sensors are on track to generate $1.92 billion in profits… 10% more than Sony’s long-established gaming arm.

Sony absolutely dominates the image sensor industry, accounting for over 50% of global sales.

The battle among smartphone firms to make better cameras has been a boon for Sony. It controls over 70% of the smartphone sensor market. And it’s been the exclusive maker of image sensors for every iPhone since 2010.

And when it comes to quality, Sony is in a league of its own. Its image sensors are so far ahead, it charges 2X as much as its closest competitor.

Right now, Sony’s world-class imaging business is flying under the radar. But as the computer vision boom takes off, I expect the stock to attract a lot of hype. And with image sensors becoming a larger part of Sony’s business, it could easily soar 300%+ in the coming years.
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1 comment:

  1. I disagree with the statement "Sony sensors are far ahead". I have extensively characterized pixel and sensor data of Sony, Omnivision, Samsung, and other sensors for consumer products. Including sub-micron pixel sizes. Sony sensors are very slightly less noisey and have slightly better color cross talk. But Omnivision is almost identical for most pixel sizes.

    Corporate buyers mostly think "if it is good enough for Apple, then it is good for me too." Maybe they're right, but the technical differences are not so big.

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