Maxim Integrated Products Inc.
) has announced that its new power management chips are now being
used in Samsung's Galaxy® SIII mobile phone.
The Maxim chipset selected by Samsung comprises three-power
management SoCs: one to power the quad-core Exynos 4412 application
processor based on
) architecture, the second to power the LTE baseband processor and
the third for other power management functions such as battery
charging and USB enhancements.
The new chipset is a big improvement from the previous
generation product in terms of energy efficiency, USB enhancement
and form factor. Therefore, management's claim that the product
enhances the SIII with respect to speed of charging, battery life
and size may not be false.
Samsung launched the SIII in May 2012 in London and by the end
of May launched it in India, Europe and the Middle East. Its U.S.
launch has been delayed slightly.
As per market research firm IDC, Samsung sold 44.5 million
smartphones in the March 2012 quarter versus 35.1 million iPhones
). Samsung thus managed to pick up 30.6% market share, racing ahead
of Apple's market share of 24.1%.
Statista, a statistical analytics website, forecasts that by the
end of 2016 there will be 192.4 million smartphone users in the US.
Alone. In addition, a study by IDC suggests that smartphone
shipments will grow worldwide at a compounded annual growth rate
(CAGR) of 18.6% until 2016.
Samsung has been launching newer and better versions of its
smartphone models at frequent intervals, while withdrawing older
models. The pace of new launches has therefore helped the company
maintain consumer interest.
Maxim's association with Samsung is a big positive, since
Samsung has been using successive generations of its products. At
the same time, we need to bear in mind that mobile phone life
cycles are very short, so Maxim has to be on its toes to ensure
that it doesn't miss a design cycle. Given the stiff competition in
the market from other analog companies like
), the company could quickly lose a socket.
In the third quarter, Maxim reported revenue of $571.2 million,
down 3.4% sequentially, 5.9% year over year and within management's
guidance range of $555.0-585.0 million. Revenue was down across all
end-markets except industrial, which was flat sequentially.
Currently, both Maxim Integrated Products Inc. and Apple Inc.
have Zacks Rank of #2, implying a short-term Buy
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