“The Street today is assessing the lift to component suppliers of Apple’s new iPhones and Apple Watch and Apple TV, unveiled yesterday during Apple’s media event in California,” Tiernan Ray reports for Barron’s.
“Shares of Dolby Labs (DLB) are up $5.08, or over 9%, at $59.02, after the maker of technology for rendering hi-def digital video got a boost from being included in not just Apple’s revamped Apple TV, but also the new iPhones,” Ray reports. “Dolby’s ‘Dolby Vision’ is among the technologies it licenses to improve picture quality.”
What caught us by surprise was the additional disclosure that Dolby Vision is being incorporated into the iPad Pro, iPhone 8, 8S [sic] [recte 8 Plus] and X. Dolby is adding HDR10 and Dolby Vision to these devices, putting pressure on other handset manufacturers by defining DV support as part of a ‘premium experience.’ Apple now joins LG, whose previously announced L6 handset supports Vision. Not surprisingly, Dolby management has said little about its Apple relationship. We believe the annual payment, which is worth $25M – $30M grows incrementally with the inclusion of these new devices. At this point we are not going to speculate on the incremental value but believe it is material and adds further credence to our belief that CY18 numbers are conservative. — Dougherty & Co. analyst Steven Frankel
Read more in the full article here.
MacDailyNews Note: Dolby Vision is an HDR format from Dolby Laboratories that can be optionally supported by Ultra HD Blu-ray discs and streaming video services. Dolby Vision is a proprietary format and Dolby SVP of Business Giles Baker has stated that the royalty cost for Dolby Vision is $2-$3 per TV.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]