“Skyworks Solutions Inc, a supplier of radio frequency chips to companies such as Apple Inc., estimated fourth-quarter adjusted profit and revenue above its forecast, sending its shares up as much as 12.5 percent,” Abhirup Roy reports for Reuters.
“Skyworks, whose chips connect smartphones and tablets to a telecom network, has been benefiting from higher demand from handset makers, particularly Apple,” Roy reports. “Apple sold 10 million of its latest iPhones in the first weekend after its new, larger phone models went on sale in 10 countries on Sept. 19. The new devices will be available in more than 115 countries by the end of the year. ‘You have got a combination of good units and apparently good sell-through for the iPhone 6 and 6 Plus and … you also have a content increase story there,’ Oppenheimer & Co analyst Rick Schafer told Reuters.”
“The market for RF chips is expanding as telecom operators upgrade to 4G networks from 3G. 4G-equipped smartphones require more RF chips than 3G-equipped ones. ‘What we say for Skyworks is that they are in the early stages of what we call an RF boom cycle,’ Schafer said,” Roy reports. “He said that the iPhone 6 and iPhone 6 Plus contained 20-25 percent more Skyworks’ components than did the iPhone 5S.”
Read more in the full article here.