Goodix, a tech company often flying under the radar, is poised to become a major player in the tech industry in 2024. Its recent developments have caught the attention of industry experts, positioning it as an underestimated winner in the realm of domestic tech substitution.
Ming-Chi Kuo, the popular Tianfeng International analyst, affirmed this in his latest market survey. According to him, Goodix, which is an underestimated winner of domestic replacement and optical fingerprint, will resume strong growth in 2024 and will be a potential beneficiary of the foldable phone trend.
Goodix Gets Multiple Partnerships with Chinese Mobile Brands
According to the analyst, one significant stride Goodix is set to make is becoming Huawei’s new ambient light sensor (ALS) supplier, replacing AMS, with this change expected to take effect in 2024. This shift highlights Goodix’s growing prominence as a reliable tech partner.
Another feather in Goodix’s cap is its exclusive partnership with Oppo as the sole NFC chip supplier, ousting NXP from this role. Furthermore, Goodix is eyeing opportunities to secure orders from other premium brands, reinforcing its position as a trusted tech provider for prominent companies.
Goodix to Challenge Qualcomm’s Monopoly
By 2024, Goodix is expected to challenge Qualcomm’s monopoly by becoming Vivo’s second ultrasonic fingerprint supplier, signaling a shift in the industry landscape. As Goodix’s core business, optical fingerprint shipments are projected to soar by an impressive 35% year-on-year, reaching a staggering 190 million units in 2024.
This remarkable growth is attributed to Xiaomi, which is set to double its shipments of optical fingerprint models in 2024. Additionally, the expanding market share of Chinese OLED displays, expected to increase from 40% in 2023 to 50% in 2024, due to lower prices, is allowing brands to allocate more of their budget to optical fingerprints.
This boost in optical fingerprint shipments will play a pivotal role in Goodix’s revenue and profit for the year, says Ming-Chi Kuo. With the company’s primary focus on optical fingerprint technology, this growth presents a lucrative opportunity.
Emerging as a Major Player in Ultrasonic Fingerprint in 2024
Another aspect that is contributing to Goodix’s rise is its involvement in the emerging foldable phone trend. The demand for slim designs in foldable phones makes ultrasonic fingerprint technology a critical component. Its slim profile, just about 1/10th the thickness of optical fingerprint sensors, positions it as a key feature for future foldable phones.
One example of this trend can be seen in the Vivo X Fold 2, which uses two ultrasonic fingerprints. As the costs of ultrasonic fingerprint technology decrease, other brands are likely to embrace this design, further promoting its adoption.
Goodix’s entry into the ultrasonic fingerprint market in 2024 is expected to drive down costs significantly, from Qualcomm’s current price point of around $10 to an estimated $4-$5. This price reduction is predicted to enhance adoption, drawing parallels to the rapid growth of high-end phones when optical fingerprint costs dropped to around $3.
Even when ultrasonic fingerprint costs match those of optical fingerprints, the profits for Goodix are projected to be significantly higher, Ming-Chi Kuo asserted. This fact underscores the substantial role ultrasonic fingerprint technology will play in Goodix’s future profitability.
