Skyworks Solutions Inc. (SWKS - Free Report) , a leading semiconductor manufacturer, recently disclosed that its SkyOne platform has created a buzz in the industry as several OEMs (original equipment manufacturers) and smartphone providers have adopted it to gain a competitive edge in the market.
The observation comes as a fresh lease of life for the company that is fighting continuous price wars and intense competition from its rivals as the industry faces a booming demand for technologically advanced products.
Integrating all RF (radio frequency) and analog content between the transceiver and the antenna, the SkyOne platform reduces complexity and size of the architectures required for advanced mobile applications. SkyOne is the first semiconductor device to compress multi-band power amplifiers and high throw switches along with all the related filtering and control functionality into a single, compact package. This in turn facilitates improved efficiency in hand-held devices and notebooks with an ease of implementation and a scalable platform as technological barriers ease.
Moving forward, Skyworks continues to capitalize on three business segments − mobile Internet, vertical markets and analog components. Demand for mobile Internet applications is on the rise with the broad proliferation of smartphones, net books, note books, caplets and other forms of embedded wireless devices. Skyworks expects to consolidate its position in the mobile Internet spectrum with a broad array of products that covers everything from net books and data cards to smartphones, and even entry-level handsets
The market for smartphones is also reportedly growing four fold compared to the traditional cellular handset. The rising RF dollar content and increasing complexity associated with the proliferation of smartphones and an array of other mobile Internet devices are fueling the total available market (TAM) growth, providing a unique opportunity for Skyworks to expand. Management further expects an upsurge in smartphone adoption in the developing countries such as India.
However, the company needs to be wary of a stiff competition from other players in the industry such as RF Micro Devices Inc. and DSP Group Inc. (DSPG - Free Report) – each carrying a Zacks Rank #1 (Strong Buy), and Anadigics, Inc. carrying a Zacks Rank #2 (Buy). Skyworks, however, presently carries a Zacks Rank #3 (Hold).