Despite Apple (NASDAQ: AAPL) announcing the latest inclusion of 3D sensing in the iPhone XS series, shares of Himax Technologies (NASDAQ: HIMX) continued its downtrend. The stock is now well below the $6.00 level and is at risk of falling further.
Few really know if Himax is a supplier to Apple, since the firm must obey confidentiality agreements. Even if it did, Himax would not make much money because Apple deals tough contracts with its suppliers. What is certain is that the company supplies to multiple Android manufacturers. And these are for high-end devices, too. In the near-term, the profitability from such supply deals are minimal. Customers are hesitant in implementing 3D sensing and need lots of hand-holding.
On Sept. 5, Himax said it has collaborated with MediaTek and Face++ on developing an Active Stereo Caamera 3D sensing reference design. This is used to give facial recognition features for payments on Android. The announcement details ASC 3D sensing. Himax provides the critical technologies, which include DOE and collimator utilizing its world-leading WLO technology in the projector.
HIMX stock is slumping and on a downtrend because the stock is a "show-me" story. For years, the company needed to pivot into new growth areas. Each time, this required heavy capital expenditures while revenue from the mature, existing business fell. 2019 could be a better year for Himax investors. In the meantime, shareholders have no choice but to wait and see.
Tech Insider
