GNSS & TRID
GNSS released earnings. Their sales are down 21%. Contrast that with TRID which announced sales up big. TRID has stolen their market. WHile TRID gave upwards guidance of ~10%, GNSS gave guidance down 10%~15%.
This is great news for TRID. But the stock is down. Probably fears about price pressure as GNSS seeks to regain momentum and get rid of inventory.
I don't think that there will be impact - if price were the key issue then TRID would not be so solidly gaining market share. Performance is what matters, and TRID is known to have much better performing chips.
The market will continue to grow and GNSS will be fine because of the low-end LCD TVs. But it is easier for TRID to go downstream than it is to go upstream: they could slash prices on older generation chips and stay competitive at the low end.
This is massive vindication for TRID. Their designs are winning. As sales volumes increase, the margins will also improve.
The market is incredibly stupid about TRID.
This is great news for TRID. But the stock is down. Probably fears about price pressure as GNSS seeks to regain momentum and get rid of inventory.
I don't think that there will be impact - if price were the key issue then TRID would not be so solidly gaining market share. Performance is what matters, and TRID is known to have much better performing chips.
The market will continue to grow and GNSS will be fine because of the low-end LCD TVs. But it is easier for TRID to go downstream than it is to go upstream: they could slash prices on older generation chips and stay competitive at the low end.
This is massive vindication for TRID. Their designs are winning. As sales volumes increase, the margins will also improve.
The market is incredibly stupid about TRID.
posted by Andrew at
8:53 AM
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