Nokia said worldwide handset volumes would grow about 10 percent in 2005 to around 690 million units -- cooling from expected annual growth of nearly 30 percent in 2004 but above the 8 percent forecast by market research firm Strategy Analytics.
Based on Scotts numbers of handset growth, and based on the fact that 70% of all handsets will have camera in them and based on an ASP od $4.46 and based on the fact that Wu said they would have 30% of the market, here are your rev growth numbers:
700 Million Handsets sold * 70% camera phones = 490 Million with camera's. Then 490 million * 30% market share = 147 Million units with OVTI inside. Then 147 Million * ASP of $4.46 = $655 Million in Rev!!!!!!!!
That means they will be at $655 million in Rev by 2007, double the size of the company today! Can this be any more clear????
You are correct in assuming this is a great long term play....short term, it is a turkey, as evidenced by yesterday and today....none of this would have come about if the company had kept their mouth shut yesterday....JMMHO.....they made one of their top people, as well as the management team in general, look very foolish.....Wall Street hates uncertainty, and OVTI gave them a bucket full of that yesterday.....