The Apple Suppliers That Benefit From Its Latest Devices
*By Michael Teich*
There are three winners not named Apple that are poised to benefit from the new lineup of iPhones ー suppliers Qorvo, Skyworks, and Synaptics.
That's according to John Vinh, equity research analyst at KeyBanc Capital Markets.
"One of the biggest selling phones coming out of the launch is going to be the lower cost iPhone XR. It sells at a $250 discount to the XS," he said Thursday in an interview on Cheddar.
Synaptics, which makes things like touchscreens for those cheaper models, stands to benefit, according to Vinh.
Skyworks, meanwhile, makes power-amplifier chips for the phones. Mizuho Securities estimates it gets 35 to 40 percent of its sales from Apple. Like Qorvo, its products will help the more expensive iPhone XS and XS Max transmit data at higher speeds.
And while Apple's share of the smartphone market has been declining, some data suggests this could be a good holiday quarter for the company.
Vinh tracks carriers' inventory of older model iPhones, which he says have "historically...been a great leading indicator of future demand trends."
Inventories are currently near all-time lows, which suggests consumers looking for a new phone will likely buy the newest models.
But there are risks ー the ever-looming possibility that Apple could bring operations in-house. News last year that the company was planning to develop its own graphics chips famously sent shares of partner Imagination Technologies plunging 60 percent in one day. The British supplier eventually sold itself to a private equity firm last October.
Vinh, though, thinks these companies are less vulnerable.
"Apple brings supply in house if they think they have the ability to do it better and to deliver better value to the consumer."
Apple unveiled three new iPhones at its annual fall keynote event on Wednesday. The premium iPhone XS Max starts at $1,099 while the "bargain" option, the XR sports a $750 price tag for the base version.
For full interview [click here](https://cheddar.com/videos/the-apple-suppliers-that-benefit-from-its-latest-devices).
The Biden administration has enacted a new labor rule that aims to prevent the misclassification of workers as independent contractors. The labor department rule going into effect Tuesday replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors
The KC-46 was to be the ideal candidate for a fixed-price development program. Instead, it has cost Boeing billions, and made industry wary of such deals.
Dave Long, CEO and Co-Founder of Orangetheory Fitness joins Cheddar to chat trends in the industry for 2024. He updates us on the company's plans to expand and what the state of the economy has meant for business.
One of the world's largest renewable energy developers will be getting hundreds of wind turbines from General Electric spinoff GE Vernova as part of a record equipment order and long-term service deal.
A moon landing attempt by a private US company appears doomed because of a fuel leak on the newly launched spacecraft. Astrobotic Technology managed to orient the lander toward the sun Monday so its solar panel could capture sunlight and charge its onboard battery.
Treasury Secretary Janet Yellen has announced that 100,000 businesses have signed up for a new database that collects ownership information intended to help unmask shell company owners. Yellen says the database will send the message that “the United States is not a haven for dirty money.”
A new version of the federal student aid application known as the FAFSA is available for the 2024-2025 school year, but only on a limited basis as the U.S. Department of Education works on a redesign meant to make it easier to apply.
A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be in focus Monday as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol.
The first U.S. lunar lander in more than 50 years is on its way to the moon. The private lander from Astrobotic Technology blasted off Monday from Cape Canaveral, Florida, catching a ride on United Launch Alliance's brand new rocket Vulcan.
