Users of Procter & Gamble Co’s (PG) Duracell battery do not need their power chargers anymore for charging their batteries. Powermat Ltd. has partnered with the retail giant’s Duracell unit to make small charging mats and receivers, which would wirelessly power up cell phones and other small electronics.
The financial details of the transactions have not been produced yet. With a 55% stake in the joint venture, Procter & Gamble’s Duracell battery will get a leg up in a market where it has not seen much success. The deal is not exclusive and the battery can switch technologies in future.
Powermat reaches its customers through several retail outlets like Target Corporation (TGT) and Best Buy Company Inc. (BBY). The company is also trying to expand its market by using the same technology in everyday objects. The company has also entered into an agreement with General Motors Company (GM) to fit in its charging mats into future Chevrolet, Buick and GMC products to facilitate charging of devices like smartphones and MP3 players.
The joint venture is expected to begin operations early next year. It will harness the capabilities of P&G and Powermat to fulfill this common vision through unrivaled innovation and growing global reach. Powermat's breakthrough technology when added to P&G's strong consumer understanding, brand-building and go-to- market capabilities, will deliver an ecosystem with best-in-class wireless power solutions, in the field of portable power
Since late 2009, Powermat has been selling its mats and receivers at airport shops and (through/to) major retailers such as Target. Powermat offers mats of different sizes, as well as an array of receiver-equipped cases and docking stations for devices such as iPhones, iPods and BlackBerrys.
The company uses electromagnetic induction to charge electronics. Basically, when you drop a Powermat-enabled device onto a charging mat, the two exchange a "handshake" using RFID, or radio-frequency identification technology. The mat identifies the device, determines how much power it needs, then starts transferring energy to it. Once a device is fully charged, Powermat will stop the electricity from flowing.
With the demand for wireless chargers picking up on the back of surge in mobile devices, the wireless charging industry is expected to reach $885.8 million in 2011 – up from $123.9 million last year. The industry is expected to generate $23.7 billion in the near future.
We are encouraged by the company’s expansion of its portfolio of brands, both through internal development and acquisition. However, P&G currently is facing high commodity cost inflation and severe competition from companies like Kimberly-Clark Corporation (KMB) and Johnson & Johnson (JNJ) in the Western European markets in both the blade and battery businesses.
P&G holds a Zacks #3 Rank, translating into a short-term Hold rating.
BEST BUY (BBY): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
KIMBERLY CLARK (KMB): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment