We’ve heard it all about Apple’s television set, but it is generally assumed that the Apple HDTV development is currently on halt. However, an interesting post which appeared yesterday on Seeking Alpha says differently.
The post speaks about a graphics chip and display processing firm, PixelWorks, which Seeking Alpha believes to be a good stock to bet on, thanks to its new client, Apple Inc.
PixelWorks’ revenue has increased by 64% since last year and it is reported that about 14% of the total revenue comes from Apple. This kept analysts wondering if PixelWorks are working on the GPU of iPhone or iPad or even the new iWatch; but the released time slots and Apple’s usual production schedules weren’t adding up.
However on another note, the CEO of PixelWorks, Bruce Walicek hinted that they’re working on a ‘large-display project’ for a ‘major client‘, which leads the author to believe that the company is partnering with Apple to produce the graphics processors for the Apple television.
Here is what Walicek said during the conference call from the last earnings report:
“More importantly, though, Q1 was a key quarter of progress as we completed a number of critical milestones during the quarter that advanced progress on our key initiatives; first, we developed the mass-production version of the advanced SOC for large-screen applications we developed under our co-development partnership.
And during the quarter, we received mass-production qualification from our customer. This is a major milestone on this project, and we are on track for volume production to begin in the current quarter and ramp it in the second half of this year, which we believe will result in significant market-share gains in 2014 and beyond.”
Seeking Alpha author, 3D Analytics, believes PixelWorks is working on a large-display project for Apple:
Based on in-depth research by 3D Analytics, it is our conclusion that the Pixelworks-Apple bond is rooted in the development and production of Apple TV [...]
Apple has yet to enter the large-display market, and based on its current intellectual property, it does not have all the technology to build a TV. This is where we see the largest benefit to Apple in partnering with Pixelworks.
For now, things are working out great for PixelWorks as their stocks are soaring high since the post first appeared on Seeking Alpha; they sold about 10 million stocks in one day, as opposed to last 30 day average of 0.7 million.