This Is OmniVision's Time to Shine

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

According to a report from consumer electronics research firm iSuppli, Apple (Nasdaq: AAPL  ) brought about a sea change in how digital cameras are built when it designed the iPhone 4. Being among the first mass-market products to use backside illumination sensor chips from OmniVision Technologies (Nasdaq: OVTI  ) , the iPhone has now impressed reviewers and shown that the strategy is both cost-effective and good for consumers.

OmniVision is the only company that's serious about building these highly efficient BSI chips today, because rivals including Sony (NYSE: SNE  ) and Panasonic (NYSE: PC  ) didn't prioritize BSI research years ago when the technology proved expensive to build. Now that the iPhone has raised awareness of this technology and other gadget builders start to follow this enormously influential trendsetter, other chip suppliers will need to crank up their BSI research projects again.

But OmniVision has a serious lead on all of them, having worked out kinks in the manufacturing and design processes that most rivals haven't even seen yet. This is OmniVision's time to shine. Capitalize now or forever hold your peace, though -- new technologies like quantum-dot photo film are gearing up to steal BSI's thunder if OmniVision falls asleep at the wheel. Some of this sounds like science fiction now, but that's always how it plays out until new technologies become the new standard.

If OmniVision does play its cards correctly here and ramps up orders through preferred chip manufacturing partner Taiwan Semiconductor Manufacturing (NYSE: TSM  ) , this will indeed be a golden age in terms of profits, sales, and technological leadership. The meek may inherit the earth, but not until the bold give it up!

Fool contributor Anders Bylund holds no position in any of the companies discussed here. Apple is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.

Read/Post Comments (0) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1292820, ~/Articles/ArticleHandler.aspx, 10/27/2016 7:19:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:00 PM
AAPL $115.59 Down -2.66 -2.25%
Apple CAPS Rating: ****
OVTI.DL $0.00 Down +0.00 +0.00%
OmniVision Technol… CAPS Rating: *****
PCRFY $10.26 Down -0.12 -1.11%
Panasonic Corporat… CAPS Rating: ***
SNE $31.84 Down -0.01 -0.03%
Sony CAPS Rating: ***
TSM $31.21 Down -0.34 -1.08%
Taiwan Semiconduct… CAPS Rating: ****