Is Apple iPhone 5S Motion Sensor Supplier InvenSense?
Posted 09/11/2013 01:45 PM ET
But Wall Street buzz that InvenSense's sensors were not part of the new iPhone, right before and after the announcement, could have triggered the initial stock decline.
In a report Tuesday prior to the announcement, Piper Jaffray analyst Auguste Richard said: "Consistent with our long-held view, we do not expect InvenSense to be in the iPhone. "We expect InvenSense will be in the next iPad which is expected to be announced at a separate event in October."
InvenSense makes sensors that track motion on devices such as smartphones, tablets, gaming consoles, digital still and video cameras and wearable fitness devices.
InvenSense's single-chip MotionTracking solutions combine MEMS (micro-electromechanical system) -based motion sensors, such as accelerometers and gyroscopes, with mixed-signal integrated circuits to improve performance, accuracy, and intuitive motion- and gesture-based interfaces.
The company declined to comment on whether its sensors are incorporated in the new iPhone.
To date, InvenSense has not announced that Apple is a customer, though there has been a lot of speculation that it is.
"The big discussion is revolving around the possibility of their getting Apple as a customer," said Craig-Hallum Capital Group analyst Richard Shannon. "There are enough hints and clues out there that they will have Apple as a customer."
Apple's new smartphone lineup includes the top-of-the-line iPhone 5S and midrange iPhone 5C.
Among the features on Apple's iPhone 5S is a fingerprint sensor, called Touch ID. It also features a new chip called the M7 motion co-processor. The M7 enables a new generation of health and fitness apps by continuously measuring motion data from the accelerometer, gyroscope and compass. As IBD reported Tuesday, Nike ( NKE) already is taking advantage of the M7 for its "Nike+ Move" app.
Some watchers have speculated that the inclusion of the Touch ID sensor precludes InvenSense's sensors being used in the new iPhone.
But others don't see the correlation: The use of the Touch ID fingerprint sensor has no relationship to InvenSense, says analyst Tristan Gerra of Robert W. Baird & Co.
(EDIT: I agree with this last statement)
"We believe that InvenSense has very good prospects with a new customer," he said. "It is well positioned to eventually get traction on the iPhone, but I don't know whether it's the announced iPhone."
Shannon says it's possible that InvenSense's sensors are in the new iPhone.
"My interpretation on what I saw suggests there is a good chance they are in there, but I cannot say with certainty," he said in an email. "The presence of the M7 chip suggests there has been a big overhaul in how motion sensors are being used, and suggests they have opened up the design to competition. I think it is more likely InvenSense would win such a competition."
news.investors.com
InvenSense Price Target Raised to $21.00 at Maxim Group (INVN)
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Equities research analysts at Maxim Group hoisted their target price on shares of InvenSense (NASDAQ:INVN) to $21.00 in a research note issued to investors on Thursday, AnalystRatings.Net reports. Maxim Group’s price target would indicate a potential upside of 16.15% from the stock’s previous close.
Other equities research analysts have also recently issued reports about the stock. Analysts at Robert W. Baird upgraded shares of InvenSense (NASDAQ:INVN) from a “neutral” rating to an “outperform” rating in a research note to investors on Wednesday, September 4th. They now have a $23.00 price target on the stock, up previously from $16.00. Separately, analysts at Needham & Company initiated coverage on shares of InvenSense (NASDAQ:INVN) in a research note to investors on Thursday, August 22nd. They set a “buy” rating and a $20.00 price target on the stock. Finally, analysts at Piper Jaffray Cos. cut their price target on shares of InvenSense (NASDAQ:INVN) from $27.00 to $25.00 in a research note to investors on Thursday, August 1st.
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