OmniVision Technologies, Inc. (OVTI), China Mobile Ltd. (ADR) (CHL): It’s Deja Vu Time for This Apple Inc. (AAPL) Supplier

OmniVision’s revenue had dropped in 2011 after it lost some of its share to Sony in the iPhone 4S as seen in the chart below, and history might repeat once again.

OVTI Revenue TTM data by YCharts

However, it still remains to be seen whether OmniVision keeps its place in the iPads and the iPod intact. But if the expected September-October release date for the iPads turns out to be true, then again there’s a possibility that OmniVision might be losing share in the tablets since production should already be ramping up.

The bottom line

There seems to be a lot of uncertainty regarding OmniVision right now. With a trailing P/E of 19, the stock is expensive, especially considering that revenue growth is expected to slow down. Analysts are expecting revenue to grow 11% this year and 5% next year, and given the doubtful nature of OmniVision’s Apple account, it is best to stay away from it.

The article It’s Deja Vu Time for This Apple Supplier originally appeared on Fool.com and is written by Harsh Chauhan.

Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and China Mobile.

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