Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: OmniVision Technologies (Nasdaq: OVTI ) dropped 11% in intraday trading today on fears that its image sensors will not be included in the next-generation iPhone.
So what: Sony's (NYSE: SNE ) CEO made remarks during an on-stage interview last Friday that some believe indicate Sony has won image sensor business from Apple (Nasdaq: AAPL ) for the upcoming iPhone 5. The iPhone 4 uses OmniVision image sensors.
Now what: There has been speculation for months that Apple would seek a second source for image sensors, and the tragedy in Japan only underscores the benefits of dual sources. Presuming Sony does have an order from Apple, it's not clear what product -- iPhone, iPod, or iPad -- Sony's sensors will go into. While OmniVision risks the loss of some market share at Apple, it is hard to assess the effect given what is known, and strong growth in Apple's products will mitigate the impact.
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