Tuesday, October 23, 2007

Microvision's Seemingly Obvious Collaborator

Today MVIS, a company I have covered before, announced another development agreement with yet another undisclosed Asian consumer electronics manufacturer. Under this agreement, MVIS and it's manufacturing partner "will integrate the PicoPTM display engine into fully functional stand-alone projector prototypes." These projector prototypes will then be targeted to consumer electronics companies for "private labeling and distribution for mobile applications including mobile phones and other devices."

What is different regarding this announcement however, is the seemingly blatant verbiage contained within the press release. According to the release, the manufacture is "one of the world’s largest consumer electronics manufacturer of mobile phones, digital cameras and personal media players." By market share the five largest manufacturers of cell phones are as follows: Nokia, Motorola, Samsung, SonyEricsson and LG, with the last three being Asian manufacturers. Of these three, all manufacture and distribute personal media players. However, of the three only two manufacture digital cameras, leaving two possible candidates: SonyEricsson and Samsung. Technically speaking, LG does sell digital cameras, but none that exist independent of a host mobile phone. Due to the press releases’ attention to three distinct categories: mobile phones, personal media players and digital cameras, LG's technicality as a digital camera manufacturer seems to exclude it from the group.

Of the two remaining contenders, SonyEricsson and Samsung, only one of these companies has a prominent link and conjoined video referencing MVIS technology on their website, thus identifying the more likely suitor: SonyEricsson. With respect to the connections listed above, it would seem as though this current non-disclosure contract isn't quite as secretive as it is made out to be. More importantly however, is the significance of a development agreement with SonyEricsson or any of the aforementioned companies. Given that this most recent partnership is with one of the worlds largest consumer electronics manufacturers, it not only provide further credibility for Microvision's technology, but it also accelerates the commercialization of Microvision's PicoP.

Disclosure: The author owns shares and call options in MVIS.


Brian said...

I am a long time owner of MVIS and have a large position, but I think it unlikely that Sony would enter a deal to white-label the picoP to other brands. They have one of the most valuable brands in the world. It is far more likely that it is Honhai or another chinese contract manufacturer which does alot of the manufacturering for other brands.

Jeff said...

people say Foxconn

GreenSightCapital said...

This is true; the brand equity of Sony is mind blowing. The post is simple speculation, which as we know high probability of being inaccurate. However, the contract is much more important than the underlining company tied to it. Right?

Spectre said...

The link on the Sony-Ericsson web page is a tough indicator to argue against.