While Atmel (ATML)
has looked for touch controllers/sensors in mobile devices to build on
its core microcontroller business and reignite some growth, that plan
hasn't exactly gone to plan. Atmel has done a good job of developing new
technologies like maXTouch, but the company has not yet broken out of a
cycle where the higher-end touch companies like Atmel, Synaptics (SYNA) and Cypress (CY)
play leapfrog with each other on each new device iteration (gaining and
losing sockets) before eventually seeing lower-ASP rivals catch up.
At
the same time, the underlying recovery for non-touch microcontrollers
has been a touch-and-go affair in end markets like industrial, wireless,
consumer devices and so on. While Atmel continues to offer leverage to
both a more general chip demand recovery as well as company-specific
drivers like improved margins and acceptance of its new XSense
technology, the slowdown in high-end handsets and the very slow adoption
of touch-enabled laptops/notebook computers still make this a
challenging investment thesis.
Continue reading here:
Atmel Needs To Show That Touch Can Be A Growth Business Again
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