iPhone Component Ecosystem: National Semiconductor

In this post, we will be analyzing National Semiconductor as part of the series on the major players in the iPhone’s component ecosystem. In the iPhone, National Semiconductor supplies the 24-bit RGB serial display interface which connects the display to the graphics controller.

National Semiconductor (NYSE: NSM), with a market cap of $8.60 billion, is a leading analog company based in Santa Clara, California. Its main products include power management circuits, display drivers, audio and operational amplifiers, communication interface products, and data conversion solutions. Its operations are organized in two groups: the Power Management Group and the Analog Signal Path Group as well as three other business units that address displays, device connectivity, and ASIC & telecom. In fiscal 2006, approximately 86% of its revenues were generated from analog-based products. In June 2005, to focus on its core analog businesses, the company sold its cordless business unit in Europe to HgCapital.

On the financial front, in Q4 2007, National reported net income of $90.1 million, or 28 cents per share, on sales of $455.9 million. This is an increase of 5.8% from the previous quarter, which saw sales of $431.0 million and earnings of 22 cents per share. However, it is a year-on-year decline of 20.4% compared to Q4 2006 sales of $572.6 million and earnings of 34 cents per share. >>>

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iPhone’s Component Ecosystem: Micron

In this post, we will be analyzing Micron as part of the series analyzing the major players in the iPhone’s component ecosystem. The 2-megapixel camera mounted on the back of the iPhone is powered by an imaging chip from Micron.

Micron Technology Inc. (NYSE: MU) with revenues of $5.3 billion in 2006 is one of the world’s leading manufacturers of semiconductor devices. Apart from CMOS image sensors, its core products include DRAM and NAND Flash memory. To reduce its exposure to the volatile DRAM market, it is expanding into specialty memory products, NAND Flash memory products, and CMOS image sensors. >>>

iPhone’s Component Ecosystem: Texas Instruments

In an earlier post, we looked at iPhone’s components where I had mentioned that Texas Instruments could possibly be providing the power management device. This mystery has still not been solved but Texas Instruments looks to be the best bet.

Texas Instruments Incorporated (TI) (NYSE: TXN) with revenues of 14.25 billion and $7.26 billion gross profit in 2006 is the world’s third largest semiconductor company. Based in Dallas, it has 31,000 employees in more than 25 countries.

The company has two primary business divisions: Semiconductor and Education Technology. The Semiconductor division, with core products lines of analog semiconductors and Digital Signal Processors (DSPs), is the breadwinner for TI bringing in more than 90% of revenue. It had another division, Sensors & Control that it sold minus the radio frequency identification (RFID) systems operations to an affiliate of Bain Capital, LLC, for $3 billion in April, 2006. Earlier in 2006, it acquired Chipcon Group ASA, a leading company that designs short-range, low-power wireless radio frequency (RF) transceivers for $183 million. >>>

iPhone’s Component Ecosystem: ST Micro

One of the coolest features of the iPhone is the orientation sensor that detects whether you are holding the phone vertically or horizontally and automatically changes the display to portrait or landscape. ST Micro is the supplier for this orientation sensor, also known as the LIS302 accelerometer. Considering the estimated price of $2.95 per unit, the ST Micro accelerometer accounts for around 1.3% of iPhone’s component price.

ST Microelectronics N.V. (NYSE: STM) with net revenues of US$9.85 billion in 2006 is the world’s fifth largest semiconductor company. Based in Geneva, the company is the largest semiconductor supplier in Europe and the 3rd largest in China. >>>

iPhone’s Component Ecosystem: Marvell

In this post, we will be analyzing Marvell as part of the series analyzing major players in the iPhone’s component ecosystem. A related, speculative post about Marvell written prior to the iPhone’s release may also be worth reading.

Marvell Technology Group (NASDAQ: MRVL) is a global leader in storage, communications, and consumer silicon solutions. It was founded in 1995 and has more than 5000 employees. In 2006, it had $1.67 billion in revenue with a loss of $12 million. On a positive front, its sales increased 34% to $2.24 billion in 2006. The company bought Intel’s Xscale communications-chip division for $600 million. Though this acquisition has added to its growth, it has affected its profitability. The company expects the effect to last till the summer of 2008.

In Apple’s iPhone, Marvell provides a wireless connectivity device, 88W8686, a 90-nm WLAN part. On the launch of the iPhone on June 29th, its stock price rose $1, or 5.8%, to $18.2. >>>

iPhone’s Component Ecosystem: Broadcom

In this post, we will be analyzing Broadcom as part of the series on the major players in the iPhone’s component ecosystem. A related, speculative post about Broadcom written prior to the iPhone’s release may also be worth reading.

Broadcom (NASDAQ: BRCM) is a leading fabless semiconductor company with revenues of $3.67 billion in 2006. The company owns over 2,000 U.S. and 800 foreign patents on wired as well as wireless transmission of voice, video and data.

In Apple’s iPhone, Broadcom provides the I/O controller (BCM5973) used for the video interface to the touch screen. Though as per an analysis by iSuppli, this chip fetches Broadcom about $1.15 per unit sold, the fact that Broadcom was selected ahead of major competition augurs well for the company. In fact, following the launch of iPhone and reports of its teardown analysis, Broadcom’s stock price has risen by $1.38, or 4.75 percent, to $30.63. >>>

iPhone’s Component Ecosystem: Samsung

In an earlier post, we looked at the major suppliers for iPhone’s components. Starting with this post, over next couple of weeks we will analyze the major players in the iPhone’s component ecosystem.

We begin with Samsung (0593Q:London Stock Exchange), which accounts for approximately $76 or 30% of iPhone’s total component cost in the 8 GB version. South Korean giant Samsung Electronics Co., Ltd. has a substantial global presence in the Digital Media, Telecommunication Network, Digital Appliance, Semiconductor, and LCD markets. It is the world’s leading manufacturer of DRAMs, SRAMs, and flash memory. An iPhone carries the following Samsung supplied components:

* Advanced RISC (ARM) applications processor
* DDR SDRAM
* NAND flash memory

Among these components, NAND has the highest dollar share. It is estimated that iPhone carries NAND Flash worth $24 and $48 in the 4GB and the 8GB versions, respectively. Apple’s choice of Samsung for NAND memory hasn’t come as a surprise. Samsung also supplies NAND flash memory for Apple’s iPods. >>>

Oracle and Enterprise 3.0

As promised in my earlier post on SAP, here is my take on Oracle in the Enterprise 3.0 framework.

Oracle is the world’s leading supplier of information management software and the second largest independent software provider. Its current market cap exceeds $100 billion.

Oracle’s core strength since its inception in 1977 has been its database technology where it has thwarted competition and maintained its number one position since the mid nineties. It was only natural that the company would focus on developing enterprise applications, which integrate seamlessly with its databases. Largely unsuccessful with internal development, it scaled its applications business by acquiring some of the largest players in the market. Today SAP is the only player of note, which competes directly with Oracle in the enterprise software market.

The big question in the context of this series is whether Oracle’s strategy fits in the larger framework of a shift towards the Enterprise 3.0 trend. >>>

SAP and Enterprise 3.0

Over numerous articles in the past, I have talked about some emerging players, which are redefining the enterprise software landscape. These players are working on cutting-edge applications, which bring vital, but non-core entities like vendors, suppliers, and even customers within the folds of the enterprise. And these applications are being delivered on-demand without the baggage of legacy systems or lengthy and cumbersome implementation phases.

Any evaluation of key players in the Extended Enterprise and on-demand trends will be incomplete without analyzing the leaders in enterprise applications—SAP and Oracle. In this piece, we look at the former. >>>

Citrix: Acquisition Target for SAP, Oracle

I have recently written several pieces on the Enterprise 3.0 and the Extended Enterprise trend. In this article, I am going to cover a company that aligns well with the trends of collaboration and the Extended Enterprise, a space that has really heated up of late, following Cisco’s acquisition of Webex.

Today, businesses are no longer limited to one location or office. Employees need to access data while on the move or even while working from home. More and more work is being outsourced and there is a need to share and access data and applications throughout the extended e(n/x)terprise. >>>