InvenSense (INVN, Financial) has accelerated its design wins by utilizing investments into second generation Six-Axis product inventory beyond the start of demand acceleration for both its second and third generation devices.
InvenSense is currently supplying the chips to each of the leading 10 mobile phones available in the market and all the key brands globally.
Making good progress
In the second quarter, InvenSense marked complete production of its third generation Six-Axis MotionTracking SoC the M2 series with latest features of ultra-low power SoC platform having third generation digital motion processor and motion app software.
InvenSense launched the ICM-20645, new member of the M2 family which is believed to be the world’s lowest power MotionTracking SoC especially designed for Google’s Android 5.0. This technology is leveraged in the next generation tablets, smartphones, wearables and watches and fitness devices running Android 5.0 and Android Wear.
Since the last few years, InvenSense has been leading the transition of the motion sensor market for complex mobile devices from gyro sensor and discrete accelerometer component to the combined Six-Axis system hand chip having motion algorithms and digital signal processing.
New products are leading to growth
During the second quarter, its Six-Axis MotionTracking SoC product portfolio persist to comprise greater than 70% of its entire unit and Android K compatible MPU-6515 and the MPU-6500 makes the majority of the revenue contribution.
InvenSense saw initial acceptance of OIS by Tier 2 manufacturers, leveraging the superior camera experience for competing with Tier 1 brands. The OIS modules are believed to be presently linked with lesser than 10% of top smartphones with significant potential for growth in the years to come.
The fourth generation OIS devices of InvenSense are presently under full-fledged production at major DSLR camera OEMs and designed into popular brands at key mobile device platforms.
In addition, several customers are gaining OIS capabilities by utilizing its Six-Axis gyroscope. InvenSense targets to continuously expand its software and hardware capability for both discrete OIS architectures and Six-Axis, with these growth opportunities seen to be exciting moving ahead and further increasing the gyro attach rates in fresh smartphones.
Software content is also seen to be huge and extremely strategic growth opportunity for InvenSense. Since last two years, InvenSense has been continuously investing organically in its own software, in creation and sensor algorithms. In the second quarter, InvenSense acquired Trusted Positioning and Movea to further improve its capabilities and competitive differentiation.
InvenSense is bound to benefit from smartphone OEMs increasingly using sensors for enabling differentiated innovative features like added accuracy of pedestrian and in-car navigation systems, internal position based services and applications. Fitness and health tracking systems, optical image stabilization, Electronic image stabilization and several other contexts to Wear applications.
The smart TV segment is believed to be a 70 million unit market with remote controls increasingly involving motion audio sensing for enhanced user interaction. The wearable market segment is also seen as a unique growth segment where InvenSense has several major design wins in numerous products. The chip maker’s minor trail, enhanced programmability and exceptionally low power usage make its Six, Seven and Nine-Axis products a solid input for wearable devices.
InvenSense is witnessing supreme traction in fitness and health devices where low system power is crucial and where its wide collection of Automatic Activity Recognition algorithms and software has capability to further enhance value.
Conclusion
Going forward, sensors are playing enhanced role in the internet of things with several innovative applications in the healthcare and industrial automotive markets. InvenSense is believed to extremely well-positioned to expand and penetrate into innovative opportunities with superior technology, improved manufacturing, highly cost efficient structure and these developing markets.
