Spreadtrum Tries Getting Smart to Reignite Growth 展讯进军智能手机市场是明智之举
After a spectacular run that saw its stock quadruple last year, cellphone chip designer Spreadtrum (Nasdaq: SPRD) is looking to smartphones for some new excitement to keep its fading growth story alive. Just two weeks after reporting first-quarter earnings that showed sharply slowing growth (results announcement), this dynamic company is trying to wow investors and cellphone makers once more with its roll-out of two new chipsets to cater to the high and low ends of the red-hot smartphone market. (announcement 1; announcement 2) The move is a shrewd one by CEO Leo Li, who is largely responsible for the company’s huge rally last year as revenue grew by triple digits and margins improved significantly under his team’s new management. Much of the excitement has faded this year, with Spreadtrum’s stock mostly trading sideways as its margin improvement and revenue growth have both tapered off sharply. So, will this new gambit work? In my view, it’s certainly a move in the right direction as most people see the future in smartphones. Of course, the big issue is competition as other, much bigger, companies like Marvell Technology (Nasdaq: MRVL) discovered this space much earlier. Still, Spreadtrum’s ability to move quickly and its home base in China — where many new smartphones are designed, manufactured and ultimately consumed — could work to its advantage. The next quarter or two should tell the story, but I’d bet the company should be able to recapture some, though probably not all, of the growth that made it such a hot ticket in 2010.
Bottom line: Spreadtrum’s gambit on smartphones will bring back some excitement to its stagnating top line, though it will face strong competition from chipmakers already in the space.
手机芯片制造商展讯去年在股市表现超群，股价增加了三倍。如今展讯打算进军智能手机市场，寻找新的增长点，寻求东山再起。两个星期前，展讯公布了傲人的一季度财报。如今这家公司推出了两款新的芯片，以满足高端和低端智能手机市场的需求。这是展讯首席执行官李力游的明智之举。今年展讯股价趋於低迷，因此大家不免猜测，新动作会不会有成效？在我看来，这显然是明智之举，因为大多数人都看好智能手机市场。当然问题在於，像Marvell公司<MRVL.O>这样的竞争者早就发现了这个商机。但展讯具有迅速行动能力，且大本营在中国，这都是优势。究竟结果如何，未来一两个季度将见分晓。但我估计展讯可以重现其在2010年造就的部分辉煌，当然也可能完全不会。
一句话：展讯进军智能手机市场有助於扩大营收，但当然也面临市场中已有竞争者的强劲挑战。
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