Industrial designers dream about products free of buttons and wired connections. Sadly, function always gets in the way.
That is likely to change. Samsung, Foxconn and other firms are partnering to launch a new consumer-electronics technology. One that goes way beyond removing the headphone jack.
Called Kiss Connectivity, it makes all input-output ports obsolete. Plus, it may bypass Wi-Fi in some cases.
This is a game-changer. And it will be a bonanza for savvy investors.
The technology comes from Keyssa, a tiny Oregon startup. It developed Kiss, a radio about the size of a coffee bean that can be added to smartphones, laptops, computers, tablets and other ubiquitous tech gear.
And that is when the magic starts.
Kiss uses an extremely high-frequency carrier to make secure, point-to-point connections through plastic and air. Data transfers hit 6 gigabits-per-second. That’s the same speed as the newest USB Type C connectors.
It’s fast enough to download a high-definition movie in two seconds, if you can wait that long.
In the image above, the smartphone is “kissing” a TV screen. Without a physical or Wi-Fi connection, it’s high-speed broadcasting a video to the screen.
Because the technology lives completely inside the device, there are no metal connectors subject to wear and tear. In fact, Kiss is based on solid-state, electromagnetic and materials technology.
There are other benefits, too. It’s protocol-agnostic. It supports USB 3.0, Display Port, SATA and PCIe. It’s power-efficient. And the company says that it’s software-transparent. That means no more software drivers.
Best of all, industrial designers can finally begin to build the thin, port-free devices they have been dreaming about.
Samsung and Foxconn imagine slimmer smartphones and other screens. Large files could be transferred to a big-screen TV in a matter of seconds simply by putting the device nearby.
Dolby Laboratories Inc. (DLB) and Intel Corp. (INTC), two early Keyssa partners, are working to bring the technology to music and business computing applications.
The possibilities are endless.
Keyssa’s management team looks like a who’s who of technology. From LSI to Texas Instruments to Avago, the team has been there, done that. In the process, Keyssa amassed 250 patents.
This is going to happen.
I often write about really big, emergent technology ideas. They’re sexy stories, easy to fall for. However, as an investor, you shouldn’t ignore the obvious stories hiding in plain view.
When Apple (AAPL) decided to forego the headphone jack in iPhone 7, it created a brand-new business opportunity.
Many people focused on Bluetooth headset-makers and faux outrage. They didn’t see how an important investment story was taking shape in software compliance.
Someone had to make the bits and pieces work together.
Cirrus Logic (CRUS) shareholders were big winners. From the breakout in February 2015 at $25, the shares rallied to $70 by April 2017.
Removing all the I/O ports is that kind investment story on steroids. A tremendous number of new winners will emerge. And they will not all be dongle-makers.
Finding these investment stories is my job. So, stick around and find out who will prosper.
Cirrus began moving when Apple started floating trial balloons about nixing the analog headphone jack.
The time to begin looking is now.
Best wishes,
Jon Markman
