The following video is part of our “Motley Fool Conversations” series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
According to the latest data, Apple is still lagging in market share in China. Chinese handset makers are leading the way. The silver lining is that Apple’s loss could be InvenSense’s gain.
InvenSense makes motion sensor chips for electronic devices such as smartphones and tablets, especially those running Google’s (NASDAQ:GOOGL) android OS. InvenSense noted in its Q4 conference call that electronics distributor Edom was a 10% customer. In its most recent quarter, it said HTC was a 10% customer. Even if Apple does cut a deal with China Mobile to sell the iPhone 5, there’s plenty of growth available for InvenSense as smartphones in China are still underpenetrated. David thinks InvenSense’s growth in China is being overshadowed by earlier issues with Qualcomm and the lawsuit from STMicroelectronics. Add in the growth in new, industrial markets and InvenSense looks very attractive today.
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David Meier owns shares of InvenSense. John Reeves owns shares of Google. The Motley Fool owns shares of China Mobile, Google, InvenSense, and Qualcomm. Motley Fool newsletter services recommend China Mobile and Google. 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.