Barclays on U.S. Semiconductors: Touchscreen Update: Atmel Delay at HTC, Windows 8, Amazon Tablets
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Price: $8.14 --0%
Rating Summary:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on U.S. Semiconductors: Touchscreen Update: Atmel Delay at HTC, Windows 8, Amazon Tablets
Analyst, Blayne Curtis, said, "We are updating our thoughts on the touchcreen controller market after a round of checks. We are tweaking our share assumptions slightly for Atmel (Nasdaq: ATML), Cypress (NYSE: CY) and Synaptics (Nasdaq: SYNA), but in aggregate our touch forecasts are essentially unchanged, as we had previously cut our numbers in October. We still believe the consensus estimates for the touch businesses need to come down to our numbers, but given the weakness in the stocks, particularly ATML, we believe this is already largely reflected."
"Windows 8 (Nasdaq: MSFT) - CES to Give a Peek, Could be a Large Driver in 2013: We see the potential for touchscreens in Ultrabooks to become a more material driver for touch starting in late CY12. From a semi perspective, the Windows 8 development partners are Atmel, Synaptics, and Wacom and we see Atmel as the best positioned, given its large screen leadership. Conservatively assuming 10-15mn notebooks with touchscreens in CY13 with 1-2 controllers each device (ASP of $4-5), this is a $50-100mn opportunity."
"HTC Strikes Again - ATML Delay, SYNA In: We believe HTC is moving to a thinner touchscreen architecture (No Apple IP issues), which is not compatible with ATML's current controller. Our checks suggest SYNA was qualified on this new architecture in October and ATML was just qualified. The net takeaway is we believe SYNA will gain share in 1Q12 with ATML shipping its new solution in 2Q12 and CY following that. Currently, we believe HTC is split 80/15/5 between ATML, CY and SYNA. With these changes, we believe the mix moves to 40-50% ATML, 30-40% SYNA and 10% CY (unchanged) in 1H12, with ATML and CY gaining some share back in 2H12. This is a slight negative, but we have already modeled ATML's share down."
"Amazon (Nasdaq: AMZN) - Checks Suggest 8.9" Still Cypress, Additional Designs Now 2H12: The recently launched 7" AMZN tablet features touch ICs from Taiwanese player ILITEK, but our checks suggest the forthcoming 8.9" tablet was like secured by CY (one chip phone solution). We believe the internally developed tablets are still in design and not likely to launch until 2H12. We believe there are 2-3 models in development (one is a 10") and both CY and ATML are both positioned to secure wins."
Analyst, Blayne Curtis, said, "We are updating our thoughts on the touchcreen controller market after a round of checks. We are tweaking our share assumptions slightly for Atmel (Nasdaq: ATML), Cypress (NYSE: CY) and Synaptics (Nasdaq: SYNA), but in aggregate our touch forecasts are essentially unchanged, as we had previously cut our numbers in October. We still believe the consensus estimates for the touch businesses need to come down to our numbers, but given the weakness in the stocks, particularly ATML, we believe this is already largely reflected."
"Windows 8 (Nasdaq: MSFT) - CES to Give a Peek, Could be a Large Driver in 2013: We see the potential for touchscreens in Ultrabooks to become a more material driver for touch starting in late CY12. From a semi perspective, the Windows 8 development partners are Atmel, Synaptics, and Wacom and we see Atmel as the best positioned, given its large screen leadership. Conservatively assuming 10-15mn notebooks with touchscreens in CY13 with 1-2 controllers each device (ASP of $4-5), this is a $50-100mn opportunity."
"HTC Strikes Again - ATML Delay, SYNA In: We believe HTC is moving to a thinner touchscreen architecture (No Apple IP issues), which is not compatible with ATML's current controller. Our checks suggest SYNA was qualified on this new architecture in October and ATML was just qualified. The net takeaway is we believe SYNA will gain share in 1Q12 with ATML shipping its new solution in 2Q12 and CY following that. Currently, we believe HTC is split 80/15/5 between ATML, CY and SYNA. With these changes, we believe the mix moves to 40-50% ATML, 30-40% SYNA and 10% CY (unchanged) in 1H12, with ATML and CY gaining some share back in 2H12. This is a slight negative, but we have already modeled ATML's share down."
"Amazon (Nasdaq: AMZN) - Checks Suggest 8.9" Still Cypress, Additional Designs Now 2H12: The recently launched 7" AMZN tablet features touch ICs from Taiwanese player ILITEK, but our checks suggest the forthcoming 8.9" tablet was like secured by CY (one chip phone solution). We believe the internally developed tablets are still in design and not likely to launch until 2H12. We believe there are 2-3 models in development (one is a 10") and both CY and ATML are both positioned to secure wins."
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