DTS Inc. (DTSI) announced that its audio technology has been selected by Pantech for its Vega range of tablet phones and smartphones.
The products include Pantech’s Vega No. 5 tablet phone (model IM-T100K) and Vega Racer smartphone (models IM-A760S, IM-A770K and IM-A780L). The Vega No. 5 tablet phone is the first of its kind to integrate DTS Inc.’s high-performance technology, which will enable customers to enjoy an enhanced and superior sound quality in mobile devices.
The Vega Racer smartphones look set to refine the audio experience for its users as it incorporates DTS Inc’s audio technology into its dual speakers. Additionally, Vega No. 5 tablet phone features a 5.0 Wide Video Graphics Array (WVGA) and the Vega Racer has a 4.3 WVGA. Moreover, both devices include dual-mode smart LCDs.
The integration of DTS Inc. technologies with mobile manufacturing companies will be incrementally beneficial for the company as it would gain traction in the mobile and tablet market space. As the demand for the mobile devices increase, the company would expand its reach to more manufacturers and thus increase its revenue.
With the competition heating up in the mobile and tablet space, quality of the product and the audio-visual experience along with innovations and affordability will be the key factors in gaining market share. In this scenario, the onus lies with the manufacturing companies to combine the technologies so that consumers can easily stream content from their phones and enjoy superior sound quality.
Moreover, the company’s partnerships with LG in selling DTS-enabled smart TVs and the incorporation of DTS technology into LG’s flagship 3D phone platform will be incrementally beneficial for DTS Inc. in the long run.
However, DTS Inc. continues to face stiff competition from Dolby Laboratories Inc. (DLB), Sony Corp. (SNE) and privately held THX limited.
We have a Neutral recommendation for DTS Inc. in the long run.
Currently, DTS Inc. has a Zacks #3 Rank, which implies a Hold rating on a short-term basis (1-3 months).
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