Qualcomm 5G, logo exhibited during the Mobile World Congress, on February 26, 2019 in Barcelona, … [+]
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Our theme on Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones and other iDevices – has declined a bit since our last update in late September. The theme remains up by just about 5% year-to-date, versus the S&P 500 which was up by about 16% over the same period.
The recent declines come after a report from Bloomberg indicated that Apple was likely to cut its planned iPhone 13 production targets for the rest of 2021, due to the shortage of semiconductor products that go into the iconic smartphone. While Apple had apparently planned to manufacture 90 million iPhones in the last three months of this year, it will now cut its target by as many as 10 million units. Although the report suggests that component supply shortfall is likely tied to two suppliers – namely Broadcom and Texas Instruments, fewer iPhones being manufactured this quarter would impact the other players in Apple’s value chain as well. That said, we think this issue is only transient. Apple’s overall orders for the iPhone 13 were apparently larger than for the iPhone 12 and carrier promos on the current generation of devices are also among the best we’ve seen in a while. This should translate into reasonable demand growth through the iPhone 13 cycle.
Within our theme, Jabil Circuit a company known for making casings for iDevices has been the strongest performer, with its stock up by 44% year-to-date. On the other side, Qualcomm, a company known for its modems and application processors, has been the weakest performer, with its stock down by almost 18% year-to-date.
[9/23/2021] Will Apple Pressure Its Supplier Stocks With iPhone 13?
Apple launched its much anticipated iPhone 13 lineup last week, with the new devices featuring upgrades to cameras, displays, and battery capacity. So what does the launch mean for Source: https://www.forbes.com/sites/greatspeculations/2021/10/18/apple-supplier-stocks-see-headwinds-on-iphone-13-supply-news/
