Behrooz Abdi, President and CEO of InvenSense, Inc. (INVN), Interviews with The Wall Street Transcript
67 WALL STREET, New York - October 7, 2013 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Cloud Computing - Mobile Device Consumer Demand - Enterprise Data Storage Demand - Energy Efficiency, Cloud Computing and Telecommunications
Companies include: InvenSense, Inc. (INVN) and many more.
In the following excerpt from the Semiconductors Report, the President and CEO of InvenSense, Inc. (INVN) discusses company strategy and the outlook for this vital industry:
TWST: In your last earnings call, you talked about a shift in your customer base from components to solutions. Can you elaborate on that?
Mr. Abdi: The component play is a very similar to a lot of other semiconductor companies, where they sell a piece of hardware to their customer and they really try to deal with their customer at a specification level, and they sell a component. But they really don't understand the end application, and what that does is that it allows their customers to be able to work with their competitors and, given the same spec, lets component players compete against each other, and obviously it commoditizes the component. But also it doesn't do service to the customer, because component players, when they sell a component, they don't understand the end application and they can't really help solve the customer problem. They let them do their thing, they do their thing and no one person in the chain really understands how the application works from a component level.
What we've been doing is really working on the software side as well as the hardware side, and really understanding what it is the customers really trying to accomplish. For example, if it is used for an imaging device or navigation device, we really try to fine-tune the software that normally would be done either by a third-party player or maybe the customer will try and do something together themselves. What we try to do is work with our component and deliver a system to our customer that really solves their problem and really helps them in terms of time to market. It saves as much as six to nine months from their development time and time to market and really brings value to them, and they are willing to pay for that value.
This really differentiates us against our competition. In terms of how well is this doing, we are starting to get very good traction in the market with this strategy. We have products whereby our customers are really valuing the...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
