Dolby (DLB) & Huawei To Bring Dolby Atmos On Mobile Devices

Dolby Laboratories, Inc. (NYSE:DLB) has recently announced its collaboration with Huawei to introduce the HUAWEI P20 as well as HUAWEI P20 Pro with Dolby Atmos sound and Dolby AC-4. The new partnership will encompass Dolby’s modern audio technologies, creating an impressive audio experience for users.

The Dolby Atmos experience will be available on mobile devices, providing a powerful audio experience via headphone and built-in speakers. Moreover, both devices support Dolby AC-4, an end-to-end audio solution to boost audio experiences for consumers and content distributors. Notably, HUAWEI P20 and HUAWEI P20 Pro owners will be enable to enjoy a more enveloping soundfield, greater subtlety and nuance, crisper dialogue as well as consistently high-quality playback volume for various feeds.

Of late, the company has been enjoying widespread industry adoption of Dolby Vision and Dolby Atmos across the world. For instance, Dolby Vision experiences an increased purchase of Blu-ray players with Sony and Panasonic announcing their first Dolby Vision players to join the league of LG, Phillips and OPPO.

Moreover, Apple (NASDAQ:AAPL) and Netflix (NASDAQ:NFLX) have been catering to subscribers with Dolby Vision content to IoS since the release of iPhone 10, iPhone 8, iPad Pro and Apple 4K TV. Further, Amazon (NASDAQ:AMZN) started streaming in Dolby Vision and entered the bracket of Netflix and Vudu. This apart, the company’s Dolby Voice technology, an audio conferencing solution, enjoys solid growth opportunities, adding to the company’s strength.

Based on the current industry trends, the company remains confident about Dolby Vision’s growth momentum and predicts the trend to pick up pace, going forward. Moreover, Dolby Cinema technology proves to be a major profit-churner for the company.

During the first quarter of fiscal 2018, Dolby launched about 20 Dolby Cinema screens, bringing the aggregate to 133 Dolby Cinemas across the world and planning to open more than 360 screens more.

The company believes that surging demand for premium viewing experiences will fuel growth for Dolby Cinema over the long haul. However, shares of this Zacks Rank #2 (Buy) stock have risen 2.6% in the past three months, underperforming the industry’s gain of 6.3%.

Apart from expanding its foothold in the traditional audio conferencing market, the company makes concerted efforts to extend its footprint in the budding video conferencing market. Additionally, Dolby Voice gears up for some interesting product launch in coordination with its latest partner BlueJeans. Besides this, the company’s solid financial health and diligent capital allocation strategies bode well for its growth plans.

Other Key Pick

Another top-ranked stock from the same space is Sony Corporation (NYSE:SNE) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sony surpassed estimates in the trailing four quarters with an average positive earnings surprise of 79.8%.

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