We noted that Synaptics (NASDAQ:SYNA) execs on their recent conference call were conspicuously quiet on a renewed deal to supply Apple with iPod touchpads. Now, Bear Stearns analysts Andrew J. Neff, Bill Hand, and Ted Chung have cracked open a new 1GB iPod nano to see whose user interface solution was inside.
They found some bad news for Synaptics and continued good news for Cypress Semi (NASDAQ:CY), as their note to clients describes:
Cracking open the new 1GB iPod nano (kids -- do not try this at home), we discovered that the unit we purchased still incorporated the CY chipset (CY8C14) for the user interface solution. While this discovery does not exclude the possibility that SYNA could still have won back some of the AAPL iPod business or that the business is dual sourced and we opened up a non-SYNA unit, we see it as a negative since investor expectations are that the new 1 GB nano would contain SYNA’s solution. SYNA management would not comment on AAPL (new nano, possibility of larger video iPod). Stock impact: negative for SYNA (not in all 1GB iPod nanos but could be a dual source provider)
SYNA 1-yr chart:
CY 1-yr chart: