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This Chipmaker Is Set to Benefit From Smartphones and Tablets

August 20, 2014 | About:
rsconsultant

rsconsultant

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Chipmaker Atmel (ATML) has witnessed a renaissance of sorts in the course of the last three months. Shares have picked up despite Atmel's blended performance in its last reported second from last quarter, principally because of an increase in the share repurchase program. Atmel investors had cheered when the organization proclaimed that it is increasing its stock repurchase approval by $300 million, and this successfully masked its blended quarterly performance.

So, when Atmel reports its final quarter results, investors would expect a strong standpoint from the organization, or else it may lose its energy. What's more there is a likelihood that Atmel could turn in a positive standpoint for the year considering the normal knock in sales of Microsoft's (MSFT) Windows 8- and Windows 8.1-based devices. What's more, developing sales of Android-based tablets, especially at Samsung (SSNLF), could be an alternate driver for Atmel.

How about we examine what's anticipated from Atmel and on the off chance that it can convey a satisfying viewpoint.

What could be normal?

Atmel's essential business is selling microcontrollers, which represent around 63% of revenue. These microcontrollers are applied in different touchscreen applications ranging from smartphones, tablets, and personal computers. Presently, Atmel is seeing some positive developments at last markets that could drive its revenue higher later on.

Atmel is checking enthusiastic about the Internet of Things. It claims to have "the most finish arrangement of Iot technologies," and this could be a huge help later on. Atmel is looking to capitalize on this business through products focused at home and building computerization, industrial machine to machine communications, wearable technology, and so on. Web of Things is relied upon to be worth $8.9 trillion in 2020, as per IDC, so Atmel unquestionably has enormous open door in this business sector going ahead.

Atmel is also optimistic about touchscreen-based Pcs picking up energy going ahead. Atmel is of the presumption that Microsoft's Windows 8.1 software will prompt stronger interest for touch-based Windows Pcs. Also, Atmel is providing its Maxtouch touchscreen controller for Microsoft's Surface Pro 2 and Surface RT devices. The sales of these two devices have bounced back generally, which is uplifting news for Atmel.

The increase in sales of the Surface will allow Atmel give a solid viewpoint to the progressing quarter. Moreover, Atmel can take heart from the way that tablets fueled by Android have picked up great ground recently, especially Samsung. In the final quarter of 2013, Samsung's tablet shipments developed almost 86% year-over-year, propelling it to the second place in the tablet space with a 19% share, as indicated by IDC.

Presently, Atmel provides products to Samsung for its key tablets. These include the latest Galaxy Note 10.1, and such key slots could help it ride Samsung's development. Then again, Atmel has also struck a partnership with Xiaomi to give its controller to the Mi3 smartphone. This specific smartphone has been an immense hit in China, selling 100,000 units in just 86 seconds after dispatch, then 220,000 smartphones in three minutes, and afterward again 150,000 units in a 10-moment flash sale.

Conclusion

All things considered, it could be said that Atmel is doing the right things as far as clients are concerned thus, the organization may turn in a finer performance this year as contrasted with 2013. Increasing sales of Windows and Android tablets, alongside the increasing applications of the Internet of Things, are great signs for Atmel going ahead, making it a decent long haul wager.


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