Thursday, December 11, 2014

Where is Sigma selling all these HPNA chips?

During Sigma Design's 2015Q3 Earnings Call, CEO Thinh Tran, said that Sigma's home networking products revenue for the quarter was 23M USD and HPNA chips account for more of than 18.4M USD.

Guessing 6 USD a chip, an high estimate, says they are selling 3M HPNA chips a quarter. With AT&T adding 600K new subscribers per quarter, where in the hell are the other 1.8M HPNA chips going? Surely AT&T is not buying 5 HPNA chips per subscriber, no?

Even more of a mystery is where are Sigma's 700K HomePlug chips going? Given Sigma's much more expensive BOM for their CG2210 chip, surely nobody would be buying the CG2210 over QCA or BRCM chips. Mystery.

Quotes from the 2015Q3 Earnings Call.
In home networking, our home networking business contributed 23 million in revenue this quarter, an increase of 5.2 million over our previous quarter as a result of sequential increase in HomePNA and HomePlug deployment. The future Home Video Networking market is being driven by the need to bring video service to multiple set-top boxes or television in the home and ensure that reliable connections of 4K TV, is more self installation and lower overall operator cost. As the only standard that enables all wire connectivity, has been getting additional momentum in the worldwide service provider space based on reliable bandwidth it offers, the self installability and a fit as a complement to wireless solutions being used by many providers.
We have been heavily engaged with the market as our sales force continues its aggressive effort to gain adoption via solution with specific focus on service providers in North America and China. Now established HomePNA product and customers continue to account for over 80% of our product line revenue, which has recently shown new growth. We believe our home networking product line revenue may fluctuate throughout the next few quarters.

2014 The year of

Eternal opptimums

SmartThings and IOT and SmartHome and HomeAutomation and WTF!

Too many buzz words. Not enough buzz.

  • Is Nest smart enough to manage electric heating? Nest asks, WTF is electric heating!
  • Wireless deadbolts; are they alive enough to open a sticky door? Nope!
  • Are z-wave&ZigBee enough? Not if you are on a budget and have a normal house.
  • Can any of these buzz words really save me $$$$$$$? Not yet!
  • Can any of these buzz words make my life better? No often!
  • BEEP!  BEEP!  BEEP! Somebody is not or is doing something or nothing!!!  

We need smarter and more reliable home automation to handle real-life.

SmartThings is a good start at the integration. But takes way too much thinking for us moms and pops. Like all of the competitors, requires way too much interaction and thinking on the consumer.

Killer apps? Heating/cooling mayby; if Nest ever figures out one temperature reading for an entire house is not enough or that not everybody had central heating.

Save money on lighting--not if you are using LED lights!

Security? Surely not. Get an SMS that your house has be broken into, call the police, only to find out your daughter has come home from college. Integration with Google Now would help, but the police will be bummed when she comes home unexpectedly early from college.