Texas Instruments (TXN - Analyst Report) or "TI” launched its latest SimpleLink Wi-Fi CC3000 module. It will allow indoor devices such as garage door openers, home appliances, lights, thermostats and treadmills, which do not have displays, to connect to a Wi-Fi network and operate via a smartphone or tablet.
The module has multiple device provisioning and it is compatible both with Apple’s (AAPL - Analyst Report) iOS and Google’s Android OS. Further, it can be connected to the cloud, i.e., the devices can be monitored through TI cloud service partners and other providers as well, thus, making it much easier for consumers.
A Wi-Fi network is immensely important in the lives of consumers today because it allows the wireless exchange of data to other electronic devices. Moreover, almost every place including airports, coffee shops and hotels have a Wi-Fi network, allowing users to access the Internet.
However, while PCs, video-game consoles, smartphones, tablets and even digital audio players are easily connected these days, home appliances including lights, thermostats and treadmills are not. A lot of technology companies have been eyeing the area, but a lack of suitable chipsets has been a roadblock. TI’s new offering is one of the enabling technologies that could make this a reality in the not-too-distant future.
According to recent research from Strategy Analytics, more than 800 million homes will be using Wi-Fi home networks by 2016. TI is therefore likely to be one of the beneficiaries.
In the third quarter of fiscal 2012, total revenue of TI was $3.39 billion, which was up 1.6% sequentially and down 2.2% year over year (slightly better than the mid-point of the narrowed guidance range of $3.27 billion to $3.41 billion).
Texas Instruments has a Zacks #2 Rank, implying a ‘Buy’ rating. Apple and Google have a Zacks #3 Rank, implying a ‘Hold’ rating in the short term.