Morningstar | Synaptics on Track to Become More Than a Smartphone Component Supplier
Synaptics develops human interface solutions for devices such as smartphones. Its products include chips that enable touch-based interaction between user and device, and the firm has predominantly focused on mobile devices in recent years. With web browsing, social media, and other applications driving smartphone adoption, Synaptics is well positioned to capitalize on this opportunity with its advanced offerings.Competition among component suppliers can be cutthroat, as up-and-coming firms strive for market share via price wars with incumbents. In contrast, mature companies look to spur growth with consolidation to offer OEMs more comprehensive solutions. Synaptics has pursued the latter, and after some well-executed acquisitions--Validity Sensors (fingerprint) and Renesas SP (display drivers)--it now boasts a broader portfolio with touch, display, and fingerprint capabilities. We believe Synaptics has the tools to drive innovation and increase its device content while staving off commoditization that frequently consumes comparable entities.Synaptics is the leader in touch and display driver integration, or TDDI, and has recently begun to reap material financial benefits from the technology. Advantages of TDDI include a simplified design process with cost and supply chain benefits in addition to a slimmer form factor with better display and battery performance. The shift to OLED displays is another strong growth vector for the firm's products.In an environment rampant with data breaches, the need for secure devices has never been greater. The proliferation of smartphone usage, particularly for information-sensitive applications such as mobile payments, has only compounded this need and will require methods for safeguarding identities. Consequently, we believe Synaptics can leverage its fingerprint sensor in the display to drive growth. In 2017, Synaptics made two consumer Internet of Things acquisitions that we believe will help it drive growth. These are Conexant and the multimedia solutions business of Marvell, which collectively sell audio, video, and voice processing solutions for smart home products such as Amazon's Alexa.Synaptics is a developer and supplier of custom-designed human interface semiconductor product solutions that enable people to interact with a variety of mobile computing, communications, entertainment, and other electronic devices. The company targets the markets for smartphones, tablets, personal computer, products, Internet of Things, products and other select electronic devices, including devices in automobiles. The company's family of products includes: ClearPad?, ClearView?, TouchView?, Natural ID?, TouchPad?, SecurePad?, ClickPad?, ForcePad?, AudioSmart?, VideoSmart?, ImagingSmart?, and other product solutions.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.