Semiconductor supply constraints prevented Pixelworks in Q1 from “meeting 100% of our demand across all our product lines,” said CEO Todd DeBonis on a Tuesday call. The supplier of video processing chips to smartphone OEMs “made significant progress with the help of our supply chain partners in closing those gaps to meet approximately 90% of our Q2 demand,” he said. “Similar to other semiconductor companies, we expect these constraints to remain a headwind throughout 2021.” The company’s 91% mobile revenue sequential increase was its third straight quarter of 50%-plus sequential growth in the smartphone sector, said DeBonis. “The mobile market is primed for growth in 2021 as the industry and end market demand recovers.” Global 5G adoption “will continue to be an important trend this year, as it enables the efficient delivery of higher quality video and gaming content to mobile devices,” he said. Analysts predict 5G-enabled devices will comprise at least a third of total smartphone unit shipments in 2021, he said. The stock closed 10.6% higher Wednesday at $3.24.

IRobot raised 2021 guidance Tuesday even as CEO Colin Angle cautioned on a quarterly call that it's "early in the year." The pandemic “continues to weigh heavily on the macroeconomic landscape and limit our visibility," he said. IRobot is challenged by the semiconductor shortage, and some component suppliers recently notified it of “potential volume limitations,” Angle said. The company is “grappling with rising costs for raw materials,” including resins that are up 50% in some situations, said Angle in Q&A; costs are higher in freight and transportation, too. Elevated costs are expected to extend through the next several months, reverting “over time” to “more normalized levels as market forces adjust.” Others also are grappling with chip issues (see 2104230052). On the “huge shift” to e-commerce during the coronavirus crisis, the executive said trends continued in Q1, with 56% of revenue coming from digital sales vs. 40% in 2019. He believes brick-and-mortar sales could “come back a bit” but not to 2019 levels when the split was 60/40. Q1 revenue grew 58% to $303.3 million. The stock closed 7.5% lower at $96.17. See Q1 materials here.

On Semiconductor expects chip "supply and demand to get back in balance when demand stabilizes later this year,” CEO Hassane El-Khoury told a Q1 call Monday. The higher “velocity” of increased demand will begin to “subside” in 2021's second half, “but will remain at a very healthy level,” he said. “We expect supply and demand to get back in balance when demand stabilizes later this year.” He conceded Q1 revenue of $1.48 billion “could have been higher if we didn’t have constraints in a perfect world.” That's a 16% year-over-year rise.

Smartphones “more than ever” are an “essential source of social connection and streaming services for entertainment, fitness, gaming and music,” and 5G consumer adoption “remains the main driver for smartphones growth,” said STMicroelectronics CEO Jean-Marc Chery on a Q1 call. ST also experienced persistently strong Q1 demand for other connected devices, including wearables, tablets, hearables, true wireless stereo headsets and game consoles, he said. A factor in the worldwide shortage of chips is the semiconductor “content increase related to digitalization and electrification, as well as higher content in traditional cars, driven by accessories,” he said.

It’s difficult to predict when semiconductor shortages might ease, Apple CEO Tim Cook told investors Wednesday (see fiscal Q2 materials here). Forecasts are challenging because most of the chip issues are with legacy nodes, and many different companies, including from other industries, are competing for supply, Cook said. Supply constraints will leave a $3 billion-$4 billion divot in fiscal Q3 revenue, said Chief Financial Officer Luca Maestri. The iPhone reached supply-demand balance only during the March quarter, which will cause a steeper-than-usual sequential decline for fiscal Q3, he said. The iPhone is coming off a record quarter, with revenue surging 66% year on year to $47.9 billion on strong iPhone 12 sales. The 5G transition is still in “early days,” Cook said, noting that a lot of 5G upgrades are ahead, especially in markets outside China and the U.S. Revenue in the quarter ended March 27 set a fiscal Q2 record, rising 54% to $89.6 billion.

Industry semiconductor shortages are “really a long-term story,” certainly lasting into next year, said NXP Semiconductors CEO Kurt Sievers on a Q1 call. Intel and others say similar (see 2104230052). “One of the biggest learnings out of this current situation is to build much more transparency” into the supply chain, “knowing that we have a manufacturing cycle time of one to two quarters,” Sievers said Tuesday. “That work is underway."

Cover glass on the back camera module of the Galaxy S20 smartphone is prone to sudden shattering “under normal use, with no external force applied,” rendering the camera “unusable,” but Samsung “did nothing to actually address or resolve” this despite hundreds of consumer complaints, alleged a complaint (in Pacer) Tuesday in U.S. District Court in Newark seeking class-action status. “Samsung has consistently denied responsibility, instead blaming consumers and refusing to repair or refund the devices,” while continuing to deny warranty claims, it said. “Having represented to consumers that the Galaxy S20 had a high-quality, professional-grade camera, Samsung was obligated to disclose that the exact opposite was true -- that the phone had a known material defect in the hardware.” No “reasonable consumer” would have bought or leased the phone “had they known of this glass shattering defect,” it said. The suit accuses Samsung of violating the 1975 Magnuson-Moss Warranty Act and breaching New Jersey consumer protection laws and other statutes. Samsung didn’t comment.

Apple misrepresents iPhones as water-resistant under International Electrotechnical Commission “ingress protection” (IP) standards, alleged a complaint (in Pacer, case No. 1:21-cv-03657) Saturday in U.S. Southern District Court in Manhattan. This seeks class-action status on behalf of iPhone owners in New York. Apple promoted the iPhone 8 as IEC-compliant for water resistance when exposed to or immersed in liquids at depths up to 1 meter for 30 minutes, said the lawsuit. The iPhone 11 is IEC-rated for water resistance at depths up to 4 meters, and the iPhone 12 at up to 6 meters, said the complaint. Bronx resident Antoinette Smith said her phone's "exposure to water of the type and manner contemplated by the device’s IP level caused damage to her device” under routine use. Apple denied her such warranty coverage, it said. She alleged fraud, unjust enrichment and violating the 1975 Magnuson-Moss Warranty Act. Apple didn’t respond to questions Monday.

So “historic” has been the growth in consumer tech sales during the pandemic that the U.S. installed base of connected goods now numbers more than a billion computers and mobile and connected-TV devices, reported NPD Monday. It canvassed 5,000 U.S. adults Jan. 25-Feb. 11, finding ownership of TV-connected and mobile devices increased by 100 million units from a year earlier. The average U.S. internet home owned 9.5 installed and connected devices in February, up from 8.5 in February 2020. Stay at home orders "played a part in the tremendous growth we saw in TV-connected and mobile devices last year as consumers looked for new or different ways to consume content,” said analyst John Buffone. “This influx of newer hardware and the growing installed base will continue to facilitate the accelerated growth in free and subscription streaming video.”

Tracker sales grew 70% year on year in Q1, unit sales up 67%, reported NPD Friday. Sixty-three percent of smartphone owners say they're “somewhat” interested in buying a tracking device for lost things; 69% for iPhone users, 57% for Android. Apple’s AirTag announcement Tuesday and recent Samsung SmartTag releases could drive new buyers, said analyst Jill Aldort.