Does Atmel Corporation (ATML) Have What Apple Inc. (AAPL) Needs?

The good news is, the company is still gaining wins with some prominent names, including Microsoft Corporation (NASDAQ:MSFT)‘s surface tablet and Hewlett-Packard Company (NYSE:HPQ)‘s Ultrabook. But considering the state of the PC industry, it’s hard to get excited there. However, Atmel continues to gain with Samsung, which is still the leader in worldwide mobile phones shipments. While these wins should help Atmel strengthen its touch sensing business, the company has also lost some socket placement in the past due to serious price competition.

It was surprising then, that management didn’t discuss Samsung’s Galaxy S IV, which is soon to be released. Synaptics has been rumored to be Atmel’s main rival for the design. With management’s tendency for highlighting Atmel’s accomplishments, that the S IV was not mentioned can only mean that Samsung went in another direction. It’s only speculation on my part, though. But outside of cost, I don’t see another reason that Samsung would dismiss Atmel’s superior technology.

There’s a buying opportunity here
It seems the company’s strong focus on profitability and improved margins is causing its unbending position. However, management deserves credit for positioning Atmel for long-term earnings and cash flow growth. This is while the company remains committed toward pushing the capabilities of touch. This is the perfect reason why Apple should make the call and why investors should buy the stock.

The article Does Atmel Have What Apple Needs? originally appeared on Fool.com and is written by Richard Saintvilus.

Fool contributor Richard Saintvilus owns shares of Apple. The Motley Fool recommends Apple, Cypress Semiconductor, and Google. The Motley Fool owns shares of Apple, Google, Microsoft, and Qualcomm.

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