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Apple Snuggles Up To Sony, Gives Cold Shoulder To OmniVision

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Finally a confirmation of the speculation that Apple loves Sony. Is it amazing that former bitter rivals are now partners?

In an ironic twist, Apple (AAPL) demolished Sony (SNE), the past leader in portable audio with its once dominant Walkman brand, but Sony has lately been courting Apple. Now it appears that Sony has succeeded at getting Apple’s love.

Apple had been relying on OmniVision Technologies (OVTI) to supply imaging sensors for cameras in its devices.  For a long time there were rumors that Sony was heavily courting Apple to supply it with image sensors.

The working assumption on the part of analysts has been that Apple would split its image sensor business between Sony and OmniVision. The speculation turned into reality when a tear down of iPhone 4S showed an image sensor manufactured by Sony.  Clearly OmniVision had lost its monopoly.  OmniVision stock tumbled.

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Apple has just released a list of  suppliers that constitutes 97% of its spending.  Interestingly, OmniVision is not listed. The reasonable conclusion is that OmniVision has either lost all of its business to Sony or its business with Apple now is just a shadow of what it used to be.

Suppliers include Advanced Micro Devices (AMD), Amphenol Corporation (APH), Analog Devices (ADI), AU Optronics Corporation (AUO), Avago Technologies (AVGO), Broadcom (BRCM), Cypress Semiconductor (CY), Diodes (DIOD), Emerson Electric (EMR),  Fairchild (FCS), Flextronics (FLEX), Intel (INTC), International Rectifier (IRF), Intersil (ISIL), Jabil Circuit (JBL),  Linear Technology (LLTC), Marvell Technology (MRVL), Maxim Integrated Products (MXIM), Microchip Technology (MCHP) Nvidia (NVDA), NXP Semiconductor (NXPI), ON Semiconductor (ONN),  Panasonic (PC), Qualcomm (QCOM), Samsung, SanDisk Corporation  (SNDK), Seagate Technologies (STX), Skyworks Solutions (SWKS), Sony(SNE) Texas Instruments (TXN), Toshiba (TOSBF), TriQuint Semiconductor (TQNT), and Western Digital (WDC).

Several of the companies listed here have a story to tell and offer excellent investment opportunities.

About Me: I am an engineer and nuclear physicist by background, have founded two Inc. 500 fastest growing companies and have been involved in over 50 entrepreneurial ventures. I am the chief investment officer at The Arora Report which publishes four newsletters to help investors profit from change. Please feel free to write me at Nigam@TheAroraReport.com.

Full disclosure: I am long Apple from an average of $131.  I took profits on 50% of the position at an average price of $360.  Subscribers to ZYX Buy Change Alert may have a similar position and may have taken similar actions.  I, my hedge fund, or subscribers to The Arora Report may have positions in INTC, BRCM, STX and MRVL.