Skip to main content

Market Overview

5 iPhone Suppliers That Could Benefit From Apple's Solid Q3

Share:
5 iPhone Suppliers That Could Benefit From Apple's Solid Q3

Apple Inc. (NASDAQ: AAPL) reported solid third-quarter earnings, which bodes well for a handful of companies that supply components to the iPhone maker, according to KeyBanc Capital Markets. 

The Analyst

KeyBanc's John Vinh reviewed Apple's supply chain channel in a research report.

The Thesis

Apple's Q3 print signals stabilized iPhone demand ahead of expectations for a ramp of a new device later this year, Vinh said in a note. (See his track record here.) 

This bodes well for five supply chain companies, the analyst said. 

  • Broadcom Inc (NASDAQ: AVGO): Apple's solid iPhone shipment and lean inventory guidance are positive for Broadcom after the stock's "overreaction" in response to its acquisition of CA Technologies.
  • Cirrus Logic, Inc. (NASDAQ: CRUS): Apple's report bodes well for Cirrus Logic's outlook, but limited content gains in the new iPhone imply minimal catalysts ahead for the stock.
  • Qorvo Inc (NASDAQ: QRVO): Qorvo could see content gains in the new iPhone related to the super PAD, along with gains among Chinese smartphone OEMs.
  • Skyworks Solutions Inc (NASDAQ: SWKS): Skyworks could see a 25-30-percent content gain in the new iPhone, which should offset any losses among Chinese smartphone OEMs.
  • Synaptics, Incorporated (NASDAQ: SYNA): Synaptics faces a longer-term growth opportunity given the ramp of CoF display drivers in a new LCD iPhone.

Price Action

Apple shares were trading up nearly 4 percent Wednesday morning to $197.88

Related Links:

Apple's Stock Hits All-Time High After Beating Q3 Earnings, Sales Estimates

Rosenblatt: Apple's Q3 Highlighted By Higher iPhone Average Selling Price, Better Gross Margins

Photo courtesy of Apple. 

Latest Ratings for AAPL

DateFirmActionFromTo
Feb 2021RBC CapitalAssumesOutperform
Jan 2021DA DavidsonMaintainsBuy
Jan 2021Deutsche BankMaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Apple Suppliers iPhone John Vinh KeyBanc Capital MarketsAnalyst Color Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
FSRMorgan StanleyMaintains40.0
NATJefferiesMaintains2.8
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
PSXMizuhoMaintains96.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com