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Keysight's (KEYS) Solutions to Aid OPPO 5G Phones Production

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Keysight Technologies, Inc. (KEYS - Free Report) 5G test and design solutions were recently selected by China-based OPPO, one of the prominent smartphone makers.

OPPO deployed Keysight’s robust 5G new radio (NR) UXM-based network emulation solutions. The 5G NR emulation solutions enabled OPPO to establish 5G video call on Nov 29. This milestone bodes well for OPPO as it intends to launch its first 5G smartphone in 2019.

Notably, Keysight’s 5G network emulation solutions facilitate end-to-end processes from development to deployment, accelerating the 5G device architecture. The solutions offer cost-efficient test techniques with high flexibility and control capabilities. Moreover, the company’s 5G network emulation solutions are deployed on E7515B UXM 5G Wireless Test Platform which is 3GPP Release 15 compliant.

Further, OPPO will leverage 5G test solutions of Keysight, in a bid to advance the development and validation of its feature 5G smartphones, consequently accelerating time-to-market. Keysight offers comprehensive Layer 1–7 test, deep network and precision measurement visibility solutions to ensure a minimal risk in development of 5G-based technologies.

We believe adoption of the company’s 5G testing and design solutions is anticipated to bolster top-line growth. Moreover, the new customer wins are expected to aid the company to expand its presence in Asia Pacific.

Encouraging 5G Trends Boost Long-Term Prospects

Per ResearchAndMarkets data, global 5G market is expected to reach $251 billion by 2025, seeing a CAGR of around 97% from 2020. Further, per MarketsandMarkets estimates, communication test and measurement market is projected to attain a $6.69-billion value by 2020 at a CAGR of 9.3% from approximately $4.28 billion in 2015.

Intensive infrastructure investments in 5G push and positive trial testing results are tailwinds in this regard. Smart connected homes, hospitals, factories and cities along with self-driving vehicles remain key beneficiaries of 5G.

Strategic 5G Initiatives to Benefit Top Line

Keysight’s 5G collaborations with the likes of ASUS, Motorola, Verizon Communications and Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated (QCOM - Free Report) , are enabling it toachieve 5G commercialization related milestones.

The company has been securing notable customer wins on the back of its strength in robust 5G product portfolio comprising comprehensive set of test and design solutions. The company’s solutions enable telecom companies to accelerate 5G deployment.

The company’s sustained focus on launching solutions for growth markets like 5G, Internet of Things (IoT) and high-speed datacenters augurs well for the top line. The company introduced S9100A, a scalable and compact 5G base station, in the recent past. The latest manufacturing test solution is aimed at accelerating deployment of 5G networks.

Additionally, the acquisitions of Ixia, Anite and AT4 Wireless have enriched the company’s 5G solutions portfolio.

On the heels of aforementioned factors, we believe Keysight is well-poised to capitalize on the ongoing upbeat trends in the 5G market and also strengthen its competitive position in the domain.

Zacks Rank & Other Stocks to Consider

Keysight carries a Zacks Rank #2 (Buy). Cadence Design Systems, Inc. (CDNS - Free Report) and Intel Corporation (INTC - Free Report) are two other top-ranked stocks in the sector, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Cadence and Intel is pegged at 12% and 8.4%, respectively.

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