OSRAM wants you!
Munich-based OSRAM (OSR.GR) has indicated that anticipated strength in its IR component business has led them to increase the staffing at their optical plant in Regensberg, Germany by 50%, through the hiring of ~1,000 new employees in R&D and production. The company is expected to be supplying Samsung Electronics (005930.KS) with IR components for the upcoming Galaxy S8 flagship smartphone, which will include iris scanning ID capabilities, and setting the pace for increased demand.
There have been a number of smartphones that have included iris-scanning identification in recent months, with the ill-fated Note 7 among the most visible, but the Microsoft (MSFT) Lumia 950, the HP (HPE) Elite x3, and much of the India-based Lava (pvt) smartphone line all include iris scanning, which is expected to quickly gain popularity as the cost of components drops and the mechanics of how the user interfaces with the device become easier.
The biggest criticism of the technology comes not from how it works, but it ‘convenience’ level, as some say holding the phone in front of you for a few seconds is far more complicated that touching a fingerprint sensor, and having to do this every time you turn on your phone will cause users to abandon the idea. In actuality, users don’t turn their phones on and off on a regular basis. The data suggests (yes there is data on how often users turn on/off their smartphones) that US smartphone users rarely turn off their smartphones (once/week is usually suggested by the manufacturer to reset applications and updates), so the idea that you would have to be holding up your phone to your eyes constantly seems to be a misconception, but we believe if users have the ability to protect the security of their smartphones, they will opt for what is most secure in most cases, especially as smartphone pay systems become increasingly popular. Perhaps OSRAM is over-anticipating near-term demand, but while timing might be off, we believe the concept makes sense.
There have been a number of smartphones that have included iris-scanning identification in recent months, with the ill-fated Note 7 among the most visible, but the Microsoft (MSFT) Lumia 950, the HP (HPE) Elite x3, and much of the India-based Lava (pvt) smartphone line all include iris scanning, which is expected to quickly gain popularity as the cost of components drops and the mechanics of how the user interfaces with the device become easier.
The biggest criticism of the technology comes not from how it works, but it ‘convenience’ level, as some say holding the phone in front of you for a few seconds is far more complicated that touching a fingerprint sensor, and having to do this every time you turn on your phone will cause users to abandon the idea. In actuality, users don’t turn their phones on and off on a regular basis. The data suggests (yes there is data on how often users turn on/off their smartphones) that US smartphone users rarely turn off their smartphones (once/week is usually suggested by the manufacturer to reset applications and updates), so the idea that you would have to be holding up your phone to your eyes constantly seems to be a misconception, but we believe if users have the ability to protect the security of their smartphones, they will opt for what is most secure in most cases, especially as smartphone pay systems become increasingly popular. Perhaps OSRAM is over-anticipating near-term demand, but while timing might be off, we believe the concept makes sense.
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