Samsung launches the Galaxy Note 7
Compared with the Galaxy Note 5 (there's no Note 6), Samsung's Note 7 has a slightly smaller form factor thanks to its use of a curved, edge-to-edge, 5.7" OLED display that brings to mind the design for Samsung's Galaxy S7 Edge.
The phone also sports an iris scanner that can be used to unlock a device, features a 12-megapixel camera similar to the S7's well-received camera, supports HDR video streaming, is water and dust-resistant (unlike past Note models) and contains front-and-back glass panels based on Corning's(GLW) - Get Report recently-launched Gorilla Glass 5, which is promised to be much better than Gorilla Glass 4 at surviving drops onto hard surfaces.
The phone goes on sale on Aug. 19.
While the high-end smartphone market has been under pressure, Samsung has been faring relatively well lately with the help of the S7's strong debut. The company's displays and cameras have helped it stand out in a crowded Android market featuring intensifying Chinese mid-range competition.
Companies with strong Samsung mobile exposure include OLED materials supplier Universal Display(OLED) - Get Report and chipmakers Maxim Integrated (MXIM) - Get Report, Qorvo (QRVO) - Get Report, Skyworks (SWKS) - Get Report and InvenSense (INVN) .
Amkor and Qorvo post above-consensus results and guidance amid strong mobile demand
Amkor Technologies (AMKR) - Get Report, a provider of chip packaging and testing services that has strong exposure to Apple suppliers in particular and mobile chipmakers in general, trounced second-quarter estimates with the help of strong Android phone demand, and (ahead of September's expected iPhone 7 launch) issued equally strong third-quarter guidance that it attributed to "the launch of mobile devices across multiple tiers."
Amkor's shares rose 13.2% on Tuesday to new 52-week highs.
Qorvo, an RF chipmaker that has iPhone exposure and is believed to have gained share at Samsung with the Galaxy S7, posted top-line results and guidance on Tuesday afternoon that were well above consensus, and said customer order activity accelerated as the June quarter progressed.
Its bottom-line results and guidance were also above consensus, but more modestly so due to gross margin pressure. With shares close to their 52-week high going into earnings, Qorvo was hammered after-hours on margin concerns. Rival Skyworks fell moderately.
All the same, Qorvo and Amkor's top-line numbers are encouraging for mobile chip suppliers that have been contending with weak iPhone sales and virtually no growth for the broader smartphone market. Aside from improved customer demand, the companies are respectively benefiting from growing RF complexity within mobile phones and demand for more advanced mobile chip-packaging solutions.
Fitbit gains after second-quarter beat and full-year guidance reiteration
With shares down 75% from a 52-week high of $51.90 going into earnings, a solid second-quarter sales beat, a slight EPS beat, inline third-quarter guidance and the reiteration of full-year sales and EPS guidance were enough to propel Fitbit (FIT) - Get Reporthigher in after-hours trading yesterday.
Revenue rose 47% annually in the second quarter and device sales totaled 5.7 million, up from 4.8 million in the first quarter and 4.5 million a year earlier. The Blaze smartwatch and "fashion-forward" Alta fitness band, both of which were launched earlier this year, accounted for 54% of revenue.
Adjusted gross margin fell to 42% from 47.2% a year ago, and missed guidance of 48%. That, along with a 90% increase in adjusted operating expenses -- both R&D and sales and marketing spending rose sharply -- weighed on EPS. Sales still skew heavily towards the U.S., which made up 76% of second-quarter revenue.
Markets still clearly have worries about the long-term sustainability of Fitbit's business, particularly with its recent growth accompanied by heavy ad spending. But for now, the company is keeping its many fitness tracker rivals at bay, and fears that Apple Watch and other smartwatches would turn the company into the next BlackBerry have been unfounded.