The VCSEL, or vertical cavity surface-emitting laser, market continues to experience "drama" and BlueFin Research Partners is compiling data and commentary from the VCSEL segment in an attempt to gain a better understanding of market dynamics.
The Analyst
BlueFin analysts John Donovan and Steve Mullane commented on the VCSEL market.
The Thesis
"The drama on the VCSEL front has been ongoing," Donovan and Mullane said in the Wednesday note.
Some of BlueFin's findings include:
- Firsthand checks suggest that Lumentum Holdings Inc LITE has seen a recent increase in new orders.
- II-VI, Inc. IIVI is focused on low-powered solutions, with the first real mass production likely to come in 2019.
- II-VI is focusing on the current iPhone line-up and opportunities for the iPad Pro X.
- II-VI appears to be ahead of rival Finisar Corporation FNSR but the competition remains fierce.
- Apple Inc. AAPL continues to insist VCSEL demand will be "massive" in 2019 and 2020, and talks of internally developing VCSEL appears to be a "negotiating tactic at this point."
- Apple has looked into fabrication in Taiwan and could produce its own VCSEL in 2020 or 2021 if its current suppliers don't increase production to meet demand.
Price Action
Shares of Lumentum Holdings were trading lower by 1.6 percent at the time of publication Wednesday. Shares of II-VI, Finisar and Apple were lower between 2-4 percent.
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