3 Winners from the Samsung Galaxy Note 4 Launch

Here are three potential winners from the launch of Samsung's "next big thing."

Sep 3, 2014 at 3:30PM

Samsung (NASDAQOTH:SSNLF) has been having a bit of a hard time in the smartphone market as of late. Though the company's mobile group is still immensely profitable, it now faces more intense competition across all of its product tiers, and it faces the additional complication of a slowing high-end mobile market. These factors contributed to the staggering 21% drop in Samsung's mobile device sales last quarter on a year-over-year basis.

It's too early to tell whether the recently released Galaxy Note 4 or its sister product, the Galaxy Note Edge, will be able to help Samsung's mobile group return to growth. However, here are three companies poised to benefit should the Note 4 take off.

No. 1: Qualcomm
According to AnandTech, the Galaxy Note 4 packs a 2.7 GHz Qualcomm (NASDAQ:QCOM) Snapdragon 805 applications processor. Additionally, it looks as though Qualcomm's latest-and-greatest modem, the MDM9x35, found its way inside of the phone as well.

The Snapdragon 805 is likely one of Qualcomm's most expensive (and likely highest margin), if not the most expensive, applications processor in its arsenal. Similarly, the MDM9x35 is likely -- as the company's most feature-rich modem -- Qualcomm's most expensive modem.

If the Galaxy Note 4 sells well, then Qualcomm's chip business should see a nice boost in both revenue and, potentially, margin.

No. 2: Synaptics
Human interface solutions developer, Synaptics (NASDAQ:SYNA), should also be a winner if the Galaxy Note 4 takes off. Though an official tear-down has yet to confirm that the fingerprint reader that comes with the Galaxy Note 4 is built by Synaptics, Sam Mobile reported about a week ago that the Note 4 would indeed feature a Synaptics fingerprint sensor.

Now, what's even more interesting about the Synaptics touch story is that while it should benefit nicely from the incremental volumes that the Note 4 will bring, the touch opportunity beyond Samsung seems far from fully exploited.

In fact, in an interview with CNET, Synaptics CEO Rick Bergman indicated that "a lot" of other manufacturers would be bringing to market mobile devices with fingerprint reading capabilities. If this holds true, and if many of those come from Synaptics, then the company should continue to see robust growth in the coming years as fingerprint sensors take hold, following the trend started by devices like the iPhone, Galaxy S, and Galaxy Note.

No. 3: (Potentially) InvenSense
According to a tear-down performed in March, it was revealed that Samsung's Galaxy S5 featured a 6-axis InvenSense (NYSE:INVN) motion sensor. It is likely that InvenSense kept the motion sensor socket inside of the Galaxy Note 4, so that it isn't an incremental opportunity (unless, of course, Samsung ended up using a more expensive sensor). 

However, Samsung did announce that the Galaxy Note 4 will feature Optical Image Stabilization -- something that was notably absent from the Galaxy S5 and the prior Note 3. According to a letter from Rosenblatt Securities back in July, InvenSense is providing the OIS sensor into the Note 4.

As is the case with Synaptics' fingerprint readers, while InvenSense should benefit if the Note 4 sells well, the longer-term benefit is that as competitors rush to compete with Samsung, they, too, will eventually need to adopt OIS. While InvenSense isn't the only company that provides this technology, it is certainly poised to compete for and win additional phones, fueling longer-term growth.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Ashraf Eassa has no position in any stocks mentioned. The Motley Fool recommends Apple and InvenSense. The Motley Fool owns shares of Apple, InvenSense, and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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