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Dolby, Samsung Tie Up To Bring Dolby Atmos On Mobile Devices

Published 02/25/2018, 09:33 PM
Updated 07/09/2023, 06:31 AM

Dolby Laboratories, Inc. (NYSE:DLB) recently announced its collaboration with Samsung Electronics (KS:005930) Co., Ltd., to introduce Galaxy S9 and Galaxy S9+ mobile devices with Dolby Atmos experience.

The Dolby Atmos experiences will be available on these mobile devices, creating powerful moving audio experience via headphone and built-in speakers. Also, Dolby has plans to expand the powerful audio experiences in additional devices for improving consumer experience. Notably, Galaxy S9 and Galaxy S9+ owners can now enjoy a more enveloping soundfield, greater subtlety and nuance, crisper dialogue as well as consistent playback volume for various contents.

Our Take

Dolby has continued its long-standing partnerships with industry frontrunners like Netflix Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) . In fact, in 2017, Netflix had started streaming in Dolby Atmos and currently offers combined Dolby Vision and Dolby Atmos experience to its global subscriber base. We believe that the company’s lookout for bringing new audiovisual experiences to the market presents an opportunity to grab a greater market share.

However, this Zacks Rank #4 (Sell) company’s shares have been witnessing a dismal run on the bourse, of late. In the past three months, Dolby's shares have declined 0.6% against the industry’s gain of 2.9%.

Meanwhile, free and proprietary sound technologies are being increasingly adopted by clients. Going forward, the company apprehends that competitors will soon freely enter this space with other offerings, thus threatening its market share. Also, Dolby anticipates lower recoveries in broadcast business in fiscal 2018 to offset other growth drivers and hinder growth.

Soft sales of PCs, DVD, Blu-ray and home theater equipments in fiscal 2018, might affect the company’s top-line growth as well. This apart, maturity of the digital cinema market exposes Dolby to a number of risks that includes pricing competition and development of cheaper products by competitors.

Stock to Consider

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

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

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Netflix, Inc. (NFLX): Free Stock Analysis Report

Sony Corp Ord (SNE): Free Stock Analysis Report

Dolby Laboratories (DLB): Free Stock Analysis Report

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