Some encouraging indicators for Invensense. Looks like iPhone volumes will surprise on the upside this quarter. Apple iPhone volumes should also get an incremental boost from iPhone SE launch, a portion of which will hit this quarter for Invensense. There's also the possibility that Invensense gets more slots in the SE (maybe microphone). iPhone 7 launch in September will be a major upgrade from iPhone 6, and Invensense is carrying Apple momentum into that launch, so one could reasonably expect to see additional slot wins there. 2016 may be too early for Invensense Ultraprint (ultrasound fingerprint imaging), but maybe not.
Huawei and Xiaomi remain the leading mobile growth stories in Asia, eating into Samsung share, with Invensense having slots in Xiaomi flagship Mi5, Huawei Mate 8 tablet, and likely in the Huawei P9 flagship releasing early April.
Particularly promising is the role of Invensense microphones in the Amazon Echo. The Echo is shaping up to be the top tech story of 2016, and the heart of the technology is the array of Invensense microphones inside. While the volumes are small relative to smartphone shipments, the Invensense dollar value per device is certainly higher, and the runaway success of the Echo is likely a harbinger of many more audio-based products to come from multiple manufacturers, much as the iPhone was the beginning of a new era in smartphones. As
the leader in the category, Invensense is well-positioned to capitalize on this trend, which should extend to automotive, IoT, VR and drone applications.
With Oculus Rift shipping next week, the focus on the VR market will sharpen. HTC Vive and Playstation VR will follow shortly thereafter. Invensense could well have slots in all three. VR volumes this year will, like the Amazon Echo, be relatively small compared to smartphones, but as with the Echo, Invensense dollar value per VR device will be higher, and volumes in 2017 and beyond will look much like the iPhone post-launch growth chart.