Swedish Fingerprints ready to meet Chinese and Norwegian competition

Smartphone users will soon find an instant sign-in with their fingers or thumbs more convenient than typing passwords.

Swedish company Fingerprints Cards (FPC) believes in fingerprints sensors is the future. After their stock jumped 11 percent in one day in September 2015, the demand for Gothenburg-based FPC’s products has continued to increase, sending its shares up over 1000 per cent in 2015 alone and catapulting it to the forefront of a booming industry in biometric sensors for smartphones, tablets, and credit cards.

The market for biometrics is heating up, and it means newer entrants also are hoping for a slice of the market share. This include two Norwegian firms, IDEX, which in recent years has lured key staffers from other biometric companies like AthenTec and Synaptics, and Next Biometrics, both of whose stocks have jumped around 200 percent this year. They are joined by Chinese Goodix and Taiwanese Egis Technology, while U.S chip giant Qualcomm is also developing a sensor.

According to Fingerprints Cards, there is no need to raise a warning finger against the increasing competition. They believe it can stay ahead of its newer rivals.

“First they need to catch us, and then they need to afford to invest in order to be bigger than us. That’s a challenge when you are not making money,” says CEO of Fingerprints Card Jorgen Lantto to Reuters.

Fingerprint Cards has already multiplied their clients from only two to twenty in a year but competition in the sector is increasing as main rival Synaptics looks for more business outside its key smartphone clien Samsung. Meanwhile, newer rivals are emerging, amid pressure on prices from cost-conscious smartphone makers.

“They [Fingerprint Cards, red.] have a window now as they deliver because competitors have not yet caught up with them, but the market always does in the end,” says Gustav Sjogren, fund manager at Norron Asset Management.  He adds “There will of course be increased competition and pricepressure here as well.”

Regardless of Fingerprint Cards soaring of shares, Gustav Sjogren are questioning its valuation.

“We have chosen not to invest in Fingerprint as we think the valuation is way too high,” said Gustav Sjogren. “To think they can keep such a market share, that just about never happens, I have experienced that so many times before.” he adds.

Fingerprint Cards believes it can stay ahead of its newer rivals.

Jorgen Lantto says to Reuters: “This is an opportunity to extend our lead.”fingerprint-sensor

Sources: www.ibnlive.com www.reuters.com



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