“Broadcom reported better than expected quarterly results on Dec. 6 after the close. But more important the company saw better than expected wireless business growth,” Mott Capital Management writes for Seeking Alpha. “It should be a positive read through to Apple and suggests that perhaps things at Apple aren’t as dire as some have feared.”

“Broadcom reported fourth quarter revenue growth of 8% sequentially and 12% year over year. But more importantly, the company saw sequential wireless growth of 32% in the fourth quarter and a year-over-year decline of 5%. Broadcom had noted in its third quarter conference call it was looking for wireless growth of 25% sequentially driven by a ramp-up of its North American OEM. It puts the current wireless results ahead of expectations,” Mott Capital Management writes. “The company noted on its fourth quarter call that the better than expected wireless revenue was driven by upside volumes and legacy phone generation and also its North America OEM.”

“Broadcom is a significant supplier to Apple,” Mott Capital Management writes. “Based on the latest results out of Broadcom one can confirm that perhaps iPhone sales may be weak, but far from a disastrous… consensus revenue estimates have fallen just 1.5% to $91.54 billion which is around Apple’s guidance. Additionally, earnings estimates have dropped 1% to $4.68 per share. Again, despite all the fears of iPhone weakness revenue and earnings estimates have remained relatively unchanged. All of this would suggest that Apple’s stock is likely oversold on fears that may be greater than reality.”

Read more in the full article here.

MacDailyNews Take: “Apple’s stock is likely oversold on fears that may be greater than reality.” Gee, ya think?

SEE ALSO:
Apple supplier Broadcom suggests older iPhone models are in demand – December 7, 2018
Apple shares continue to fall as iPhone lens-maker reports sales drop; analysts downgrade – December 6, 2018
The pessimism and hypocrisy surrounding Apple is endless – November 28, 2018
Here’s why Apple is ending unit sales reporting of Mac, iPhone, and iPad – November 28, 2018
The end of iPhone, Mac, and iPad unit sales reporting is not bad news for Apple – November 27, 2018
Is Warren Buffett adding to Apple under $175? – November 26, 2018
Explaining the recent Apple selloff, and why the stock looks undervalued – November 23, 2018
Apple is no longer worth anywhere near one trillion dollars – November 23, 2018
Apple to lower iPhone XR pricing in Japan in order to boost sales – November 23, 2018
Why the bad news on Apple keeps on coming – November 23, 2018
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
iPhone XR production cuts not due to soft demand – analyst – November 10, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018