BofA Says These 4 Companies Could Benefit From The Next Apple Product Cycle

Zinger Key Points
  • BofA Securities releases a research note based on Apple’s suppliers naming companies that could benefit from an Apple product cycle.
  • The firm maintains its Buy rating on Apple with a $225 price target highlighting higher growth in Services revenue and capital returns.

Apple Inc. AAPL recently released a list of its top suppliers for materials, manufacturing and assembly of its products which showed that China remains a key manufacturing base and India is ramping up production as well.

Why It Matters: 

BofA Securities released a research note based on the list of Apple's suppliers which named companies that could potentially benefit from an Apple product cycle. 

BofA named electronics manufacturers Jabil, Inc. JBL and Flex, Ltd. FLEX as potential beneficiaries and noted Apple accounted for 17% of Jabil's revenue in 2023. 

Amphenol Corporation APH provides connectors and antennas for the iPhone, and BofA estimates Apple accounts for single-digit revenue at Amphenol. BofA also noted glass maker Corning Incorporated GLW remained on Apple's 2023 supplier list. 

Related News: Apple And Tesla ‘Only Two Companies Able To Thread The Needle In Terms Of China-US’, Says Top Analyst After Tim Cook And Elon Musk’s Recent China Visits

The firm maintained its Buy rating on Apple with a $225 price target highlighting higher growth in Services revenue and continuing capital returns. BofA also expects a strong iPhone upgrade cycle in 2025 driven by the need for the latest hardware in order to enable generative-AI features. 

AAPL, JBL, FLEX, APH, GLW Price Action: According to Benzinga Pro, Apple shares are up 3.24% at $174.75, Jabil shares are down 0.66% at $117.49, Flex shares are up 0.16% at $29.02, Amphenol shares are up 0.86% at $121.53 and Corning shares are up 0.85% at $31.60 at the time of publication Monday.

Image: Courtesy of Apple, Inc.

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