With signs of slowdown and higher marketplace inventories espoecially in the Asian mobile phone market customers have started to significantly slow down new orders. Infineon therefore anticipated a significant reduction in revenues for 1st qtr 2005.....As market research institutes prdict a slowdown in mobile phone market for 2005.
Not at all. The inventory issue is entirely in cheap low end non camera phones made by Chinese vendors rushing in. They are now frantically designing and building camera phones using ovti chips. The companies that make the various chips that goes into a cell phone have all reported mixed results because of this. But OVTI is supplying the most highly sought after camera chips. Ovti is likely to post an inline to slightly up Oct quarter and will guide up significantly for the next q and beyond. Do some digging before rushing to superficial conclusions.
We shall see. I have done very well with this stock both short and long. OVTI has only begun to introduce new chips into the market mostly for companies to test. This company is in the middle of product transition and it will take another couple of qtrs before any real upside EPS or revenues. Mu SONY and TOSIBA also have new chips. The competion has only intensified for this company. It has not gone away. Just my 2 cents.