Update 1: Synaptics Down on Fears Over Apple Pact
02.10.2005, 02:35 PM
Two analysts on Thursday cut their investment ratings on Synaptics Inc., citing concerns that a major customer, Apple Computer Inc., may drop Synaptics' touchpad interface in favor of a newly released in-house design.
<snip>
"To be clear, Cypress is only providing some of the application-specific integrated circuits that are used in Apple's interface solution, so other vendors are providing the other components," Neff wrote in a research note. "However, since Synaptics' solution is a custom designed, stand-alone solution ... we believe (it) is not in upcoming iPods."
<snip>
While Synaptics' managers were silent on the prospect of losing Apple's business, S.G. Cowen analyst Robert Stone noted that Cypress would not confirm a deal with Apple but in November estimated that its Microsystems division would more than double its revenue to $25 million this year.
"The company would not explain how they could generate such significant growth at the time," Stone wrote in a research note. "However, we believe the assumption of an iPod interface win is one plausible explanation."
forbes.com
Since "A" we believe "B" even there is no justification that "A" has anything to do with "B," so there. The entire iPod is a custom design. That is it's strength. If it was a generic design with generic components, there would be hundreds of copycat products diluting the market in no time. This argument either sounds phoney, or stupid. I'm not sure which.
Plus there is no reason for an iPod to have a two fingers scroll function.
Perhaps now that the price target has been met, guidance can be raised.
Herb |
