Texas Instruments (TXN - Free Report) or "TI" has developed a software kit that will allow Google’s (GOOG - Free Report) Android 4.1.2 ("Jelly Bean") to run on its Sitara ARM AM335x Cortex-A8 processors.
The Sitara processors are known for their easier navigation that supports twice the speed, thus enhancing and smoothening Android’s processing power in a smartphone device. Eventually, the user experience is further boosted.
Currently, smartphones, tablets and ultrabooks are the most popular electronic gadgets. The popularity of smartphones and tablets is related to their portability, their slimmer and lighter build, multi-tasking capabilities including the viewing of videos, Internet connectivity, and easy availability of social networking sites including Facebook (FB - Free Report) and Twitter. Given the growing number of functions that these devices are now required to perform, as well as the demand for portability, power management in these devices is of utmost importance.
As per a survey conducted by CloudTalk, 60.0% of users use their smart devices for emailing, 50.0% access social networking sites to chat and 40.0% surf the Internet. The survey also found that users want more communication apps. Hence the demand for processing speed continues to increase.
As per IDC, 75.0% of smartphones shipped during the third quarter of 2012 were supported by the Android operating system (OS), i.e., 136.0 million units out of 181.1 million units shipped globally. This was followed by Apple’s (AAPL - Free Report) iOS-supported devices with 26.9 million units shipped, capturing a mere 15.0% market share.
IDC is predicting that Android will dominate the OS space and may hold 63.8% share worldwide followed by Apple, which might hold 19.1% share in 2016.
Thus, there is ample growth opportunity for TI’s processors as Android is currently dominating the OS space and may continue doing so in the near-term as well. Further, strength in Android’s market will be beneficial for Google as well.
In the third quarter of fiscal 2012, total revenue 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 recently narrowed guidance range of $3.27 billion to $3.41 billion).
Texas Instruments, Apple and Google’s shares all have a Zacks #3 Rank, implying ‘Hold’ rating and Facebook has a Zacks #2 Rank, implying ‘Buy’ rating in the short-term.