Irvine-based chipmaker Broadcom Corp. is benefiting from the escalating smartphone war between Apple Inc. and Samsung Electronics Co.
Samsung’s latest version, the Galaxy S4 released last month amid much pomp and circumstance, carries Broadcom’s combo Wi-Fi, Bluetooth and FM tuner chip, according to teardown specialists at San Luis Obispo-based ifixit.com, who take apart devices to determine their content or make repairs.
The device has some nifty features, including longer battery life, an application to control a home entertainment system, a 13-megapixel rear camera and NFC technology compatible with Google Wallet for electronic purchases. NFC allows users to swipe a phone over tags and readers to make financial transactions.
It also employs some sensitive sensors, which enable users to control screen features through eye, face and wrist movements, change a music track or answer a call with a hand wave, and sift through emails by hovering a finger over the screen.
Samsung projects the device will push its smartphone sales past 510 million units this year, boosting earnings by some $8.3 billion. Some of that growth is pinned to its earlier S3 and S2 models, which also carry Broadcom’s Wi-Fi chips. The S3 model had the company’s combo Bluetooth/receiver chip, as well.
The growing popularity of Samsung’s large-screen, speedy smartphones made the South Korea-based company Broadcom’s largest customer in 2012, accounting for $1.3 billion, or 17.3%, of its record $8.01 billion in sales, according to its annual report.
Samsung, the world’s largest consumer electronics maker, overtook Nokia in mobile phone shipments last year, with 29% market share, according to Englewood, Colo.-based market tracker IHS Inc. And it’s expected to extend its lead this year.
The strong gains helped Samsung overcome Cupertino-based Apple to become Broadcom’s top customer.
Apple—which accounted for 14.6% of Broadcom sales in 2012, up from 13.1% in 2011—was Broadcom’s largest customer in 2010 and 2011.
Broadcom is known to have a slew of chips embedded in Apple’s products, including the new iPhone 5, MacBook Airs, iPods and other products.
Mobile-Tech Pep Rally
Orange County’s tech sector got a branding boost last month with the inaugural OC Mobile Conference, which drew some 280 people, nearly double the expected turnout.
About a third were out-of-town visitors, primarily from Silicon Valley and other parts of the state, who took part in a half-day conference focusing on mobile trends, security issues, and the growing need for business-centric apps and user-friendly operability.
The show’s producers—M2Catalyst LLC, which provides mobile technology services, such as app development, and startup accelerator Octane—used the event to underscore the county’s deep tech roots in an effort to change perceptions that OC is a surfside bedroom community.
“Orange County is truly a mecca for mobile technology,” said Octane Chief Executive Matthew Jenusaitis. “We’re trying to connect people and ideas.”
Peter Linder, vice president and head of engagement practice at the North American operation for mobile-device equipment maker Ericsson, and David Butler, senior business leader for MasterCard’s Mobile OpenAPI program, were keynote speakers.
The March 19 event was held at the Pacific Club in Newport Beach.
Tag Scanning Boosts Company
Growing adoption of NFC technology helped Santa Ana-based Identive Group Inc. temporarily get back to profitability.
The company posted an adjusted profit of $601,000 in the fourth quarter, compared to a loss of $1.2 million a year earlier, and beat Wall Street expectations. It marked the first time in more than a year that the company operated in the black.
Sales topped $26.5 million in the quarter, down 5% from a year earlier and in line with estimates.
The improved performance prompted an upgrade by Irvine-based investment bank C.K. Cooper & Co. to “buy” from “hold.”
It bears watching if Identive keeps up momentum for its near-field communication and radio-frequency identification tags, or tags readable by other devices, which hit a sales record in the December quarter.
Emerging NFC technology, in addition to allowing users to swipe a phone over tags or readers to make financial transactions, also lets them access a website or open other applications.
It’s forecast to account for $180 billion in mobile payments by 2017, according to U.K.-based Juniper Research Ltd.
Overall, Identive saw sales of $94.6 million in 2012, down 8% from 2011.
It posted a net loss of $50.3 million, compared to a net loss of $9.7 million. Much of the loss was attributed to devalued property and other assets.
Identive projects revenue between $22 million and $24 million in the March quarter, in line with Wall Street expectations.
It projects a net loss of $750,000 to $1.5 million. Analysts on average forecast a loss of $3 million.
