STMicro sees smartphone chips rebound thanks to Apple iPhone

“STMicroelectronics NV forecast a rebound in smartphones chips thanks to customers including Apple Inc., but said that growth won’t benefit profitability as new products ramp up,” Marie Mawad reports for Bloomberg. “Revenue will grow about 10 percent in the third quarter from the second to roughly $2.5 billion, and gross margin will be about 40 percent, the company said in a statement Wednesday. ”

“Analysts anticipate that new iPhones, due typically in September will act as revenue catalysts for STMicro,” Mawad reports. “Another Apple supplier, AMS AG, eased concerns about smartphone chip demand with a strong quarterly outlook, driving a rebound in semiconductor shares this week.”

“With a new CEO at the helm, STMicro is sticking to a strategy of diversifying customers from phone makers to car-makers and industrials to navigate demand swings,” Mawad reports. “STMicro had reported ‘weak demand’ in smartphone components up until around mid-May, but been predicting a strong improvement in the second half of the year.”

Read more in the full article here.

MacDailyNews Take: Apple’s next wave of iPhones will be one for the history books!

Note: STMicro makes imaging and proximity sensors used in Apple’s iPhone models.

Face ID sensor-maker AMS shrugs off second quarter loss with rise in new orders – July 24, 2018

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