ON Semiconductor ( ONNN - Analyst Report ) launched new radio frequency (RF) components that could deal with some of the challenges the latest generation of smartphones is posing for manufacturers.

The demand for thinner handsets is posing design challenges for engineers as sleek designs rule the sales of these handsets. Moreover, the devices are used for purposes other than calling (listening to music, using maps to move around, using social networking sites like Facebook ( FB - Analyst Report ) , Twitter to chat and others) and therefore require extended battery life.

Thus, On Semi’s new RF product may plug the hole by reducing power consumption and increasing antenna volume without affecting the performance of the smart device. Further, with the deployment of 3G and 4G Long Term Evolution (LTE) networks, power efficient sleek handsets with smaller antenna area are currently in demand.

As per a report by IDC, 219.4 million smartphones were shipped in 2012 where Samsung topped the list with 63.7 million units shipped in the fourth quarter of 2012 for a 29% market share. Its 76% jump from the year-ago quarter helped it topple Apple Inc. ( AAPL - Analyst Report ) , which shipped 47.8 million units, followed by Huawei, Sony ( SNE - Snapshot Report ) and others.

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

ON Semi reported revenues of $725.5 million in the fourth quarter of fiscal 2012, down 6.2% sequentially and 11.4% year over year. Reported revenues were within management’s guidance range of $720.0–760.0 million or down 1–6% sequentially.

On a pro forma basis, ON Semi reported net income of $37.0 million or a 5.4% net income margin compared with $53.5 million or 7.4% in the previous quarter and $58.4 million or 7.6% in the year-ago quarter.

On Semi has a Zacks Rank #2 (Buy).