Craig-Hallum: InvenSense might finally have its iPhone deal

A 6-axis InvenSense (INVN) motion sensor may have been designed into the iPhone 6, thinks Craig-Hallum, reiterating an Outperform and $22 PT. The firm sees the win providing a $0.25 EPS boost if it happens.

InvenSense was frequently rumored last year to be the motion sensor supplier for the iPhone 5S/5C, but Apple ultimately went with traditional supplier STMicroelecronics (STM -2%). iPhone 6 sales forecasts are running high, given Apple is expected to finally address pent-up demand for bigger iPhones.

Meanwhile, Roth thinks InvenSense might have scored multiple design wins for Amazon's Fire phone. In addition to typical motion sensors, the Fire phone has baked optical image stabilization into its 13MP rear camera, and supports 3D viewing with the help of 4 front cameras. Shipments will likely be a small fraction of iPhone levels.

Previous: InvenSense launches gyroscope for wearables

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Comments (11)
  • Esekla
    , contributor
    Comments (4758) | Send Message
    I was consistently right in throwing cold water similar Apple rumors all last year, and I believe this one is wrong too.


    My most recent INVN article predicts where the company is going, and investors are currently discussing the latest stock activity there, specifically a spate of insider selling surrounding the past and upcoming earnings cycle.
    20 Jun 2014, 12:46 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1601) | Send Message
    I have to disagree with you here. I am pretty sure INVN has the iphone 6 socket. Management has been talking about it for several conference calls in a roll. Last call they said they were accumulating inventory for a large new client.
    20 Jun 2014, 12:58 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (10107) | Send Message
    Agree with Philip, INVN is actually doing somebody about the speculated inclusion in the iPhone. Last year they talked about the potential of a new big customer, but this year they are ramping up inventory for it. Can't imagine any other customer being large enough for a ramp.
    20 Jun 2014, 02:04 PM Reply Like
  • Robert 7809591
    , contributor
    Comments (1052) | Send Message
    Then who do you think all the extra inventory is for?? Does apple require potential suppliers to be "ready" before they get apple as a customer?? As I remember the inventory was not finished product, but (for lack of a better term and going back to the CC) semi finished work in progress chips that could be built into different configurations. I have about a 100 percent gain here and don't want to give it up. Would you recommend some kind of put option buying to protect against the rumors once again not coming true? I think the company is around fair value here, but as the rumors heat up going into the next CC, I can see us once again hitting 24 or maybe more. Once its confirmed we are not in the Iphone 6 or smartwatch this can easily go down into the mid to low teens.
    21 Jun 2014, 08:55 AM Reply Like
  • funbuddy
    , contributor
    Comments (3) | Send Message
    Amazon Fire use InfraRed.. not INVN
    20 Jun 2014, 01:59 PM Reply Like
  • bbrownmaventown
    , contributor
    Comments (2) | Send Message
    They could have been talking about the amazon phone as that NEW client
    20 Jun 2014, 02:00 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (10107) | Send Message
    INVN wouldn't talk about the AMZN phone as a new, big client. They don't need to ramp inventory for a phone that might get lucky to hit 2M devices.
    20 Jun 2014, 02:05 PM Reply Like
  • atollie
    , contributor
    Comment (1) | Send Message
    Seeking Alpha need to consider how readers view the consistent promotion of INVN stock price. INVN have failed to capture Apple sockets for many design cycles despite many consistent predictions that they have. A best it says you have no idea what you are talking about, at worst some could consider other reasons.
    20 Jun 2014, 02:41 PM Reply Like
  • Tom Incorporated
    , contributor
    Comments (355) | Send Message
    Seeking Alpha is merely disseminating the opinion of Craig-Hallum Capital’s Richard Shannon as published on Barons here:


    Nowhere on this page have Seeking Alpha expressed their own opinion. If the Baron's piece had quoted Richard Shannon saying that INVN were unlikely to get the iPhone6 that would be the story here instead.
    20 Jun 2014, 04:09 PM Reply Like
  • Hendershott
    , contributor
    Comments (1842) | Send Message
    It doesn't really matter if it's the Ip6 or not, INVN has a big new client they are building inventory for.
    20 Jun 2014, 08:00 PM Reply Like
  • jtsuno
    , contributor
    Comments (3) | Send Message
    Motley Fool discussed INVN supplying iWatch motion sensors as far back as 6/1/14:

    26 Jun 2014, 03:56 PM Reply Like
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