As Apple Inc. AAPL goes, so do its suppliers. This week, Apple broke out to new 2016 highs, and top iPhone supplier Skyworks Solutions Inc SWKS is on the verge of following suit.
Skyworks hit an all-time high in June 2015 at around the same time Apple made its all-time high. Since then, both stocks have trended lower, and Skyworks hit its 2016 low back in February when it dipped to $54.05.
After pulling back from $75.79 down to $65.76 in the first couple of weeks of September, encouraging news about iPhone 7 sales and extremely disappointing news about a leading competitor has Skyworks up 15.7 percent on the week headed into Friday’s session.
Skyworks needs an $0.81 gain on Friday to join Apple in making new 2016 highs. Update: The stock was under selling pressure shortly after the opne, down $1.70 to $75.36.
Related Link: Perfect Storm Of iPhone News Sends Apple To New 2016 Highs
Apple itself doesn’t report iPhone preorder numbers, but mobile carrier T-Mobile US Inc TMUS has reported that preoders for the iPhone 7 and 7 Plus are four times higher than the prior iPhone record. Sprint Corp S has also reported preorders for this year’s models are up 375 percent compared to last year.
At the same time, Apple’s primary smartphone competitor, SAMSUNG SSNLF is recalling its Galaxy Note 7 device due to a number of reports of batteries exploding and catching fire.
The starts seem aligned at the moment for Apple and its suppliers like Skyworks. With the stock set to deliver its first golden cross since mid-2013, Skyworks may have plenty of upside remaining.
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