The Apple Inc. AAPL, which has emerged as a tech behemoth, riding on its innovative appeal and aesthetically designed products, has been supporting and fueling the growth several of its suppliers.
These suppliers provide Apple with components such as chips, capacitive touch screen controllers, memory modules, phone casings, taptic engines, ceramic capacitors, flash memory and mobile DRAMs, etc.
Given the sheer size and clout, Apple is able to enforce strict quality norms and favorable terms of trade with its suppliers.
Some of the suppliers rely too heavily on Apple that a loss of business or reduction could spell trouble for the company. For example, U.K.-based semiconductor company Dialog Semiconductor derives roughly 75 percent of its revenues from Apple. Earlier when reports emerged that Apple is planning to trim its purchase of Dialog's power management chips, the latter's shares fell to a 16-year low in early April.
The iPhone, which fetched Apple roughly 55 percent of its revenues in its recently reported fiscal year third quarter, has several components sourced from several vendors around the globe going into it.
- Dialog Semiconductor: Power Management IC.
- Intel Corporation INTC: Power Management IC; RF, Base Band, RF Receiver.
- TDK Corp (ADR) TTDKY: Antenna Switch Module.
- Qorvo Inc QRVO: Envelop Tracking.
- Cirrus Logic, Inc. CRUS: Audio Codec, Audio Interface.
- Broadcom Ltd AVGO: FEM, PAM.
- Skyworks Solutions Inc SWKS: FEM, PAM.
- NXP Semiconductors NV NXPI: NFC.
- Bosch Sensortech GMBH: Barometer sensor.
- Alps Electric Co Ltd (ADR) APELY: eCompass Sensor.
- Taiwan Semiconductor Mfg. Co. Ltd. (ADR) TSM: Systems-on-chips.
- Huizhou Desay: Battery.
- Universal Scientific Industrial: BT/WLAN.
- Lattice Semiconductor Corp LSCC: Glue Logic.
- SK HYNIX INC SPON GDR EA REPR 1 ORD SHS HXSCL: NAND Memory.
- SAMSUNG ELECTRONIC KRW5000 SSNLF: SD RAM.
- Knowles Corp KN: Cell phone microelectromechanical system microphone chips.
- TTM Technologies, Inc. TTMI: Printed Circuit Boards.
- Jabil Inc JBL: Printed Circuit Boards.
- QUALCOMM, Inc. QCOM: Cellular modems.
- Pegatron: Assembles iPhone.
- Hon Hai Precision Industry Co., Ltd.-ADR HNHPF, also widely called Foxconn: Assembles.
- Texas Instruments Incorporated TXN.
- Analog Devices, Inc. ADI.
- Flex Ltd FLEX: Chargers.
- LG Display Co Ltd. (ADR) LPL: OLED Display.
- Micron Technology, Inc. MU: Memory modules like DRAM, LPDDR3 and LPDDR2.
- MURATA MFG CO UNSP ADR EACH REP 0.25 ORD MRAAY: Ceramic capacitors.
- InvenSense Inc INVN: Gyroscope and accelerometer.
- Novatek: LCD driver.
- Broadcom: Touchscreen controller, WiFi, Bluetooth.
- Linear Technology Corporation LLTC: Battery power management.
- NXP: System power management.
- Infineon Technologies AG (ADR) IFNNY: RF, handset baseband.
- TTM Technologies: Printed Circuit Boards.
- Jabil: Printed Circuit Boards.
- Flex: Chargers.
- Flex: Assembler of Macs.
- Amphenol Corporation APH: Metal injection mold-made, or MIM hinges.
- Advanced Micro Devices, Inc. AMD: Graphics chips.
- NVIDIA Corporation NVDA: Graphics chips.
- Advanced Semiconductor Engnrng Inc (ADR) ASX: Systems-In-Package Modules.
- Amkor Technology, Inc. AMKR.
- STATS CHIPPAC LTD SCIPF.
- Nidec Corporation (ADR) NJDCY: Taptic engines.
Suppliers Having Huge Exposure To Apple
Based on RBC Capital Market's analysis carried in Investors.com, here is the list of the companies which derive a significant portion of their revenues from Apple.
- Dialog semiconductor: 75 percent.
- Cirrus Logic: 66 percent.
- Foxconn: 50 percent.
- Skyworks: 44 percent.
- Qorvo: 32 percent.
- Advanced Semiconductor Engnrng: 31 percent.
- InvenSense: 30 percent.
- Knowles: 25 percent.
- Jabil: 24 percent.
- TTM Technologies: 20 percent.
- Taiwan Semiconductor: 16 percent.
- Pegatron: 15–25 percent.
- Broadcom: 15–20 percent.
- Qualcomm: 13 percent.
- Analog Devices: 10 percent.
- Amphenol: 10 percent.
- Intel: 3–5 percent.
- Flex: 3–4 percent.
- Nvidia: 3–4 percent.
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