I’m puzzled that people still think IoT is still a long way off for Skyworks when the CEO said in an investor conference that he would bet he could walk into your home and find 25 Skyworks products.
I pulled this form my notes on last December’s earnings report in January 2015.
Q1 Business Highlights
• New design wins in Cisco’s latest home gateway for cable operators
• Secured multiple analog devices in a platform for GM vehicles
• Delivered modules for Samsung and other LTE smartphones
• Introduced Zigbee® solutions for smart lighting products at LG and Philips
• Expanded wearable designs with multiple devices in Timex Ironman smartwatch
• Delivered switching and connectivity modules for Xiaomi Mi4 platform
• Supported Thales avionics platforms with hi-rel switching products
• Captured over ten dollars of analog content in set top box application for DirecTV
Now this was a whole year ago!
Here’s what they announced new in the last quarter:
Q4 Business Highlights
Captured Wi-Fi, Bluetooth and ZigBee® content in the Google OnHub Connected Home Gateway with a suite of 20 devices
Launched tuning and connectivity ICs in Huawei’s Nexus 6P smartphone platform
Extended momentum in the connected home with ZigBee® front-end modules in Samsung’s SmartThingsTM suite of products
Expanded presence in a leading small-cell BTS platform with $25 of content
Unveiled SkyOne® and diversity receive modules in ZTE’s Axon smartphone
Secured display backlight and power management functionality in LG infotainment centers for upcoming Hyundai models
Powered Arris DOCSIS 3.0 cable modem for Time Warner deployments
Supported Moto X smartphone with five devices including TrueFlash™ dual LED camera flash IC
Introduced ZigBee® solutions for Philips’ latest smart lighting hub
Does that sound as if their business is all smart phones? Really?
This is from the CEO in the last Conference Call. Take the time to read it all, not just what I bolded!
All in all, this was an outstanding year for Skyworks. And we continue to see numerous opportunities to capitalize on the powerful technology trends that are fueling the long-term growth in our served markets. These include exploding data consumption across the consumer and enterprise landscape; these include soaring adoption of cloud services from the likes of Amazon, Google and others; the proliferation of connectivity throughout the emerging markets; and the rise of the Internet of Things. These global trends are all in the early innings and all rely on seamless connectivity to efficiently and reliably move massive amounts of data anytime and anywhere.
The end result is a boom in connected devices and worldwide data consumption fueling tremendous opportunity, but also creating major technical hurdles within the industry. By virtually every measure, consumer appetite for streaming services is growing dramatically, as traditional broadcasters and new content service providers, like Netflix, Amazon and Hulu, race to gain a foothold in the new online world of content distribution.
In fact, analysts estimate that mobile data usage will increase at nearly 60% compounded through 2019. This places significant strains on network infrastructure and on devices. As an example, consider that an hour of streaming high-definition video consumes roughly one to two gigabytes of network bandwidth, 4K streaming devices consume two times to three times this amount. And further exacerbating the industry’s challenges is the limited amount of spectrum and network capability available to address this pending surge in data.
Market forecasts estimate that only around one-third of the spectrum needed to meet bandwidth requirements over the next few years is in service today. And to solve this imbalance, carriers are either deploying new spectrum or finding ways to increase the throughput of existing frequency bands. Finally, this rising data trend directly impacts the battery life of today’s devices, and they demand higher and higher power levels. This comes at a time when our customers are already wrestling with power budgets to implement more capable processors, higher definition screens and other power consuming features.
As customers struggle to adapt to these market realities, we are increasingly being brought into the architectural discussions much earlier in the design cycle. This is the primary reason we are shaping next-generation solutions to implement higher band counts and the use of unlicensed bands, increasing carrier aggregation combinations, tighter and tighter filtering requirements, more complex receive architectures, advanced Wi-Fi configurations and more sophisticated techniques to manage power and increase efficiency.
As customers implement this next level of functionality, they are increasingly demanding more system-level solutions and higher levels of integration and these are playing directly into Skyworks’ strengths.
We see all of these dynamics increasing our addressable content across the breadth of our service markets for years to come. As I mentioned earlier, this backdrop provides us with a high confidence level in our business trajectory, [and we are raising our Outlook…]
Looks good to me.