Google’s Android operating system took market share away from Apple in the previous quarter, as the Cupertino-based giant saw its share drop from around 52% in Q4 of 2011 to 43.6% in the previous quarter. There are concerns that the iPad mini might be cannibalizing its bigger brother, but impressive growth of Samsung, Amazon and Asus might create further pressure even though the iPad is the tablet of choice. Thus, being in the Android camp in the war of operating systems seems to be finally reaping results for Atmel after disappointments in the past.
Atmel has also trained its sights on the fast growing smartphone market in China. Its maXTouch controllers have landed design wins at Samsung, Meizu, Xiaomi and others, which are among the popular phones in the country.
It is this positivity which has been driving Atmel’s shares up. Both investors and management expect Atmel to do well on the back of its broad product portfolio and partnerships with the best names in the mobile devices industry.
The rise in the prominence of Android tablets and touch-based computing devices are probable tailwinds and this can’t be denied. In addition, the company also expects growth from automotive and Wi-Fi connectivity. It’s acquisition of Ozmo, a maker of ultra-low power Wi-Fi solutions, certainly adds to Atmel’s portfolio and should reap dividends going forward.
Hence, if a sordid outlook for the current quarter isn’t much of a problem, then investors should take a look at this chip company since it can deliver the goods in the long run.
The article Investors Have Faith in This Chip Company, So Should You originally appeared on Fool.com and is written by Harsh Chauhan.
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