To: Bengrahamman who wrote (48 ) 2/15/2005 9:46:05 PM From: HerbVic Read Replies (1) | Respond to I read into your post that there was still some risk of further downgrades, especially if the sell side speculation was spot on. However, IMO the reaching speculation that the little bit of laptop business transferred to a new designer/vendor is indicative that the click-wheel's design/sourcing will follow is a pretty big leap. It would be Apple's policy to go with the best technology for the very specific application it was intended for. That's only prudent, and consistent with Steve Jobs' mantra of quality above and beyond competitors in all developed products. It would be contrary to the company's objectives to arbitrarily re-source a well established and successful part. There would have to be compelling reason to do so. In my speculation, it is possible that Apple may have another design project in progress with Cypress. That project could be in development of an iPod device with a completely different form factor than the present iPod, but that does not supplant the present iPod. ... On Feb 9, firm confirmed Cypress Semiconductor (CY) has won design contracts for at least some of the next generation iPods, likely due out in the late summer or fall of 2005. The iPod business was expected to represent approx 30% of SYNA's revenue in fiscal 2006, and 45-50% of operating income. While firm has limited info regarding the extent of the Cypress win, CSFB anticipates Synaptics could retain between approx 40% and 50% of future unit volume. Firm believes the presence of another competitor in the personal digital entertainment space will impact the future gross margin SYNA can achieve in its non-PC segment. ...
