4 Possible Winners of Apple, Inc.'s iWatch


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4 Possible Winners of Apple, Inc.'s iWatch

  1. 1. 4 Possible Winners of Apple’s iWatch
  2. 2. 1. NXP Semiconductor (NASDAQ: NXPI) • Apple’s M7 co-processor in the iPhone 5s is actually a rebranded customized microcontroller from NXP. • The M7 efficiently collects and processes data from the accelerometer, gyroscope, and compass.
  3. 3. 1. NXP Semiconductor (NASDAQ: NXPI) • The iWatch is expected to feature over 10 sensors, including common MEMS devices. • An upgraded M7 made by NXP could be utilized to process and analyze data collected from these sensors.
  4. 4. 2. Universal Display (NASDAQ: OLED) • The iWatch is rumored to adopt a curved OLED display, which would be a first for Apple. • Tim Cook has criticized OLED displays in the past, but OLED properties make it ideal for a smart watch.
  5. 5. 2. Universal Display (NASDAQ: OLED) • Universal Display is the largest holder of OLED intellectual property, and collects royalties from OLED display makers. • The company also sells organic materials used in producing OLED displays.
  6. 6. 2. Universal Display (NASDAQ: OLED) • An OLED-equipped iWatch alone would not be a game-changer for UDC, but it could hint at broader adoption throughout Apple’s product portfolio. • An OLED-equipped future iPhone would be a major game changer.
  7. 7. 3. STMicroelectronics (NYSE: STM) • STMicroelectronics is the predominant supplier of MEMS sensors in the iPhone. • The iWatch should also include a gyroscope, accelerometer, and compass. • Apple could stick with STMicroelectronics as its primary MEMS supplier.
  8. 8. 3. STMicroelectronics (NYSE: STM) • The iPhone 5s uses an accelerometer made by Bosch Sensortech, which was Bosch’s first Apple design win. • But users reported performance problems, which were mitigated with a software update. Underlying hardware problems were never ruled out. • Could Apple want to switch back to STMicroelectronics?
  9. 9. 4. OMRON (OTC: OMRNY) • Apple is reportedly including a sensor to measure blood pressure. • OMRON is a leader in healthcare equipment and sensors. • OMRON offers a MEMS- based blood pressure monitor small enough to take measurements from a finger.
  10. 10. 4. OMRON (OTC: OMRNY) • Apple and OMRON have done business before. Previous versions of iPhoto have used OMRON’s OKAO facial recognition technology. • Warning: OMRON’s ADR trades over the counter and is highly illiquid. This possible winner is highly speculative.
  11. 11. 1 For The Road There’s another possible component play that could capitalize on booming iWatch sales.