Yes, i believe INVN has a braoder, more complete solution for smartphones. Having said that, I didn't buy MEMS for their smartphone business. I am more excited about their new flow sensor. Maybe I am stupid, but I think that's where the profitable growth is coming from.
I actually did ask MEMS investor relations their viewpoint on INVN. The IR rep said "we don't see them much". That is either a lie, or just plain ignorant (the later I think).
The drop is probably due in part to this statement in their 10-Q...
We have been advised by Samsung that it is forecasting decreased sales of the smartphone models in which our sensor is included, while sales of newer Samsung smartphones that do not include our magnetic sensor are increasing. As a result of this, and related inventory corrections by Samsung, we expect that our net sales to Samsung will decrease by 50% or more in the second quarter of 2012.
They have two big customers, one being Samsung, which means that their sales could drop by $5M or more next quarter.