As a consequence of Apple starting its mass production of new phones that come with sensors, Austrian chipmaker AMS AG is reported to have observed a 49 percent increase in its third-quarter core profit. This gave way to forecast the profit for the next period as well, all credits to Apple.
AMS is a well-known smartphone and tablet market in the industry and investors are hoping that their newly launched product, which will be launched in the second half of 2018, will provide higher and better sales in the upcoming years. Particularly, the investors are hoping for better sales of Apple’s three new iPhones, which, as suggested by analysts, might come along with a face recognition sensor as well. Analysts also suggested that this will account for a good 40 percent of AMS sales.
AMS reported that the third-quarter earnings before deduction of interest and tax (EBIT) reached a whopping $60.2 million, which is 13 percent of the revenue from the profit it made last year, which was $40.5 million (roughly Rs. 300 crores). This value is expected to rise up to 16 to 20 percent in the fourth quarter.AMS added- “This expected positive result is a reflection of the ramp-up nature of the quarter due to the increase in production volumes for a recently launched global smartphone platform. We are making very high volumes of products for this programme. Revenue in this quarter reached a whopping $479.6 million (it was $305.5 million in 2017) and it is expected that it will rise to about $570 and further to $610 million in the upcoming three months through December.”
AMS didn’t reveal the identity of its customers, but it is said that AMS was referring to Apple in the above statement.
The Swiss-listed company’ prediction of high sales is based on the fact that it has started production of 3D face recognition sensors for two Android customers as well.
One of the 2 Android customers includes China’s Xiaomi, which is considered to be the fourth-biggest smartphone maker in the world.
Some analysts are also considering that Huawei’s new Mate20 Pro phones might also use AMS’s sensors for their face recognition feature. This means that Huawei, which is the second-biggest smartphone maker in the world is also AMS’s customers.
AMS group said it has been working on sensors for a major smartphone manufacturer, and this sensor will have the ability to scan the surroundings in 3D and will be known as world-facing 3D sensors. Some analysts predicted that this manufacturer could be Apple since it is one such company which has its dominance in the augmented reality industry.
AMS’ prime focus has been on four businesses: optical sensors (which would be used in the new iPhones), image sensors (which might be used a potential application in self-driving cars), audio sensors (such as microphones) and environmental sensors (which can detect temperature or moisture).
In the near future, AMS plans to reduce its efforts in the environmental sensing and instead strongly focus on “very attractive mid- and long-term growth opportunities in optical technologies.
AMS said- “This will include new areas of innovation such as photonic elements and photoacoustic structures.“