Back to top

Analyst Blog

On Semiconductor (ONNN - Analyst Report) recently launched an optical image stabilization (OIS) integrated circuit (IC) – LC898111AXB-MH –for better accuracy and less power consumption in smartphone camera modules.

OIS is an intriguing feature of the smartphone, which stabilizes the recorded image by varying the optical path to the sensor. This technology is implemented in the lens itself and helps to stabilize the image projected on the sensor before the image is converted into digital information.

LC898111AXB-MH will help designers to attain maximum image accuracy, while reducing overall power consumption. The device combines the controller and driver functionality to deal with OIS in the camera modules to give superior picture quality. Also, the device will provide pan and tilt functions, enabling wide area coverage. The output of the IC’s integrated pulse width modulated (PWM) driver lowers power consumption as well as reduces the effect of noise on image quality.

ON Semi realizes the importance of enhanced camera performance and efficient power management and it constantly launches new products in the power management segment. The recently-launched products aims to enhance the performance of smartphones and tablets.

Currently, smartphones are one of the most talked about and hottest-selling electronic gadgets. The popularity behind smartphones are their slimmer and lighter build, efficient camera feature and multi-tasking capabilities such as easy availability of social networking sites -- Facebook (FB - Analyst Report), Twitter (TWTR - Analyst Report), etc. -- viewing videos, and Internet connectivity among others. Hence, the importance of power management in these devices rises as these applications can drain out the power in the devices very easily.

As per market researcher Gartner, in the second quarter of 2013, smartphone sales exceeded feature phone sales for the first time and accounted for 51.8% of the overall mobile phone sales.

As per a report by IDC, smartphones shipments too were at a record high at 258.4 million in the third quarter of 2013. The performance in the third quarter was even better than the preceding quarter in terms of shipments, affirming a continued winning momentum of the smartphone market. The firm expects worldwide smartphone shipments to exceed one billion units in 2013, up 40% year over year. This would mark the first year to record such a huge volume.

Therefore, it is apparent that the smartphones will see very strong growth, which will boost ON Semi’s power management business.

ON Semi has a well-diversified business and an end-market focus that would typically generate relatively steady revenues throughout the year. The company’s third-quarter 2013 earnings of 17 cents exceeded the Zacks Consensus Estimate by a penny. Revenues of $715.4 million were up 3.9% sequentially and at the mid-point of the company’s expected range of $700.0 million–$730.0 million.

ON Semi has a Zacks Rank #3 (Hold). Other stocks that have been performing well and are worth a look include Melco Crown Entertainment Limited (MPEL - Snapshot Report) and Microchip Technology (MCHP - Analyst Report). Both stocks carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
PANTRY INC PTRY 21.02 +2.09%
INTEL CORP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%