Nomura Securities on Semiconductors from Mobile World Congress 2012: Broadcom Loses Share at HTC, QCOM and WoA, and Intel-ZTE
Analyst, Romit Shah, said, "We believe the current environment of low (but rising) GDP and inventories is favorable for semiconductor stocks. Our top longs are Avago (Nasdaq: AVGO), Broadcom (Nasdaq; BRCM), and Maxim (Nasdaq: MXIM). Our top shorts are Intel (Nasdaq: INTC), Marvell (Nasdaq: MRVL), and Texas Instruments (Nasdaq: TXN( (all Reduce)."
This Month’s Theme: Mobile World Congress 2012...Big picture – Most of the Android phones look the same. The Android tablet market feels dead. Almost every OEM is using quad-core. Not sure consumers will care.
On Broadcom – While the company’s tone was positive, we believe that Broadcom lost market share at HTC. Only one in four models introduced last week is using Broadcom’s connectivity. The rest are using TI and QCOM. That said, the company appears solidly positioned at Apple and Samsung.
Nvidia (Nasdaq: NVDA)- The company announced that its quad-core Tegra 3 processor is powering the new HTC One X. This seems like a good win. But outside of HTC, LG and Asus, Tegra was largely nowhere to be found.
Qualcomm (Nasdaq: QCOM): Windows on ARM (WoA) is one of Qualcomm’s bigger projects. The company is working on thin, light, always-on and always-connected devices using metro applications. WoA is not a revenue opportunity in 2012, but Qualcomm will be collaborating with several partners in 2013. Microsoft’s announcement around WoA timing being consistent with Windows 8 was a big deal, according to Qualcomm, because it illustrated strong support for the WoA architecture. We believe Qualcomm has a transistor roadmap advantage over other ARM-based processor suppliers.
Nokia (NYSE: NOK): We did not expect Nokia to make any material announcements at MWC, yet were still disappointed with what was shown. Nokia’s new low-end Windows Phone (Lumia 610) is priced at €189 ($250), in line with our prior expectations and above the $200 point we felt was needed for the device to materially expand Nokia’s Windows Phone addressable market. <<