Last night, I found another news piece for ACTS written in Chinese that is quite interesting and very bullish development for the company in my opinion. For whatever reason, the company decides not to put out formal news release in the U.S. for this significant development. I am just going to post the news here on my personal blog to share with my closest followers and people who are the most interested in the stock (in other words I don’t want to spook the management team’s intention of keeping this under the radar for now).
Without further due, here is the big deal: Actions and the 2nd biggest Chinese electronic map provider Ritu (http://ritu.cn/index.aspx) announced a joint-developed solution that put GPS function in all MP4 devices (which pretty much means all portable devices with mid to high end multi-media function)! This news was reported by two of the biggest electronic news sites in China:
I see this as a win-win situation because both companies can benefit greatly by integrating its own product with the other company’s products. I think it is likely that most portable devices that use Ritu GPS map will use Actions’ chipset too. According to this report - http://email@example.com – in 2011 there were 6.86 million units of portable GPS devices sold in China, a YOY growth of 31% from 2010. I call this “traditional portable GPS market” because these devices provide mostly GPS function but very limited multi-media functions. Because this market is only at its infant stage, annual growth rate in the next several years likely will be even higher. Assuming that it grows 40% this year, there will be 9.6 million units sold, of which about 1.05 million units will belongs to Ritu.
Now, that is only for the traditional GPS market. New portable MP4 devices that adopt Ritu and Actions’ solution can easily dwarf that number as the units of MP4 sold in China every year is probably in hundreds of millions.
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