Tomahawk, WI 02/05/2014 (BasicsMedia) – The global supply chain is in full force when we look at RF Micro Devices Inc (NASDAQ:RFMD). The chipmaker supplies chips used in the iconic Apple Inc (NASDAQ:AAPL)’s iPhones, and Apple’s deal with China Mobile will ensure that the company has a very steady revenue stream.

The Future:

RF Micro Devices Inc (NASDAQ:RFMD) has added several new products to its portfolio. These include two products aimed at the Wi-Fi markets, specifically to the automobile Wi-Fi applications. Many companies are working feverishly to develop applications for the automobile sector. They want the future cars to be interconnected. In fact, Google Inc (NASDAQ:GOOG) is testing a driver-less car; a car so intelligent that it can drive from one place to another very safely. All such applications run on chips.

Currently, most of the drivers are connected. They use their smartphones or other mobile devices. Adding connectivity to cars will lead to several advantages. For example, if a car suffers a breakdown, it may be able to notify the mechanic what is wrong with it. Or in case of an accident, it can notify the emergency crews the exact location. Of course, Wi-Fi will require dedicated corridors to connect but as cars get more intelligent, can the highways be far behind?

The Present:

The future is still some years ahead of us. But even in the present, the deal between China Mobile and Apple will be music to RF Micro Devices Inc (NASDAQ:RFMD)’s ears. RF Micro also supplies Samsung Electronics so the overall demand for smartphones will only add value to the company. The recent quarterly revenues saw the company report a 6% increase in its revenues to $288.5 million. The non-GAAP net income also increased to $36.4 million. RF Micro expects to report revenues of $250-$260 million for the current quarter.

The benefits of a global supply chain will accrue to even investors of RF Micro Devices Inc (NASDAQ:RFMD).

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