Skyworks' SkyOne Module Features In Huawei's Smartphones

Leading wireless semiconductor company, Skyworks Solutions Inc. (NASDAQ:SWKS) , recently announced that it has been chosen by the Chinese multinational electronics goods manufacturer, Huawei, to install a broad suite of its products in the latter’s flagship P9 and P9 Plus smartphones. Per the deal, Skyworks will enable these smartphones with its highly advanced modules. Financial aspects of the deal were not revealed.

About Huawei

Headquartered in Shenzhen, Huawei provides its services across more than 170 countries. In 2012, Huawei was named the world’s third largest smartphone manufacturer. In 2014, the company was ranked third in the world in mobile phone shipments and, in 2015, it became the first Chinese company to sell over 100 million mobile phones in one year. It has 16 R&D centers across the United States, Germany, Sweden, Russia, India, and China.

Skyworks’ Features in P9 and P9 Plus

Skyworks will be fitting out SkyOne Ultra 2.0 solutions including integrated filters and SkyBlue technology, antenna tuners, power management devices and multi-throw switches on Huawei’s latest mobile platforms. This highly integrated module will provide best-in-class battery life and overall system efficiency to Huawei’s latest smartphones. Skyworks will offer technical expertise and innovative designs. Further, it will enable true single stock keeping unit platforms with flexible antenna support and baseband agnostic interface, providing Original Equipment Manufacturers competitive advantages and reduced time to market. This module will also reduce complexity for users.

By leveraging Skyworks’ analog and RF expertise, Huawei will offer its customers advanced solutions with unmatched new features in the smartphone series, P9 and P9 Plus. This series will comprise a virtual triple-antenna architecture, which is specifically designed for consumers who require robust and seamless connectivity to networks.

Benefits from the Deal

Per a research conducted by Germany's largest market research institute, and the fourth largest market research organization in the world, Gesellschaft für Konsumforschung (GfK), the demand for smartphones could reach 442 million units in China this year. This shows an increase of 70% year over year. Based on this research we can say that using Skyworks’ advanced technology Huawei will be well positioned to gain an edge over its peers.

This collaboration will augment Skyworks’ top-line growth and will help the company strengthen its footprint in the smartphone industry, which is growing at an astronomical rate.

Skyworks carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks include EnerNOC, Inc. (NASDAQ:ENOC) , Qorvo, Inc. (NASDAQ:QRVO) and Core-Mark Holding Company, Inc. (NASDAQ:CORE) . Qorvo and Core-Mark sport a Zacks Rank #1 (Strong Buy), whereas EnerNOC carries a Zacks Rank #2 (Buy).