Sales of Apple’s new iPhone 13 lineup have reportedly been stronger than that of even the strong-selling iPhone 12 family and the company has therefore been ramping up production.
Apple is reportedly reducing the production of older iPhone models in a bid to increase the output of the iPhone 13 lineup and reduce the wait times customers are currently facing. All of this bodes well for Skyworks Solutions (SWKS) and Cirrus Logic (CRUS), two component suppliers whose chips can be found inside the new iPhones. iPhone success could mean rising stock prices for both of these suppliers.
Apple produced 56% of Skyworks’ revenue in fiscal 2020. And now, the iPhone 13 could keep driving impressive growth for the company as Apple has opted to use the company’s front-end radio frequency (RF) modules in its new smartphones.
Apple is packing more 5G bands into the iPhone 13 to drive adoption in more countries. The increase in 5G bands means that Apple will have to use more radio-frequency filters, which could lead to more revenue for Skyworks from each unit sold.
TechInsights also revealed that Cirrus Logic is supplying five chips for the new iPhones. The chipmaker is providing audio codecs, audio amplifiers, and a power conversion chip for the iPhone 13 lineup, which points toward an improvement over the iPhone 12 that used four Cirrus chips, all of which were related to audio.
So, it seems like Cirrus may get more money out of each unit of the iPhone 13 lineup that Apple sells. This bodes well for the chipmaker as Apple is its largest customer, accounting for 72% of its revenue in the first quarter of fiscal 2022. Just like Skyworks, the launch of the iPhone 12 gave Cirrus a big shot in the arm, and the new models can supercharge the chipmaker’s fortunes.
MacDailyNews Take: As the multi-year Mother of All iPhone Supercycles™ enters year two, Apple suppliers can indeed benefit – as long as they stay Apple suppliers. So betting on these companies isn’t, of course, a sure thing. As always, do your due diligence before investing.
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