Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Avoid this Supplier as Apple Inc. (AAPL) Sales Decline

Page 1 of 2

Bearishness in Apple Inc. (NASDAQ:AAPL) is creating an opportunity for investors interested in the company’s component suppliers. When Apple Inc. (NASDAQ:AAPL) traded below $400 intraday, the decline was based on worries from an analyst that the company had high iPhone channel inventories. Wal-Mart and AT&T also said they would cut the price of the iPhone 5 to $129 on a 2 year contract. Apple Inc. (NASDAQ:AAPL), along with suppliers, sold off in recent sessions as a result.

Apple Inc. (AAPL)

Supplier Sell-off

Cirrus Logic, Inc. (NASDAQ:CRUS) and Skyworks Solutions Inc (NASDAQ:SWKS) were the biggest decliners over the last year. Cirrus Logic, Inc. (NASDAQ:CRUS) supplies analog and mixed-signal integrated circuits to a number of industries, but its growth relies on Apple Inc. (NASDAQ:AAPL). Cirrus supplies audio chips for Apple Inc. (NASDAQ:AAPL)’s mobile devices–in fact, up to 90% of its revenue comes from Apple Inc. (NASDAQ:AAPL).

AAPL data by YCharts

In April, Cirrus warned the market that quarterly results would not meet expectations. The company expected to write down inventory and blamed a single customer for its lowered outlook.

Skyworks Solutions Inc (NASDAQ:SWKS) sings a different tune for investors. The company, which makes analog semiconductors, started the year with a strong forecast. Skyworks expected positive momentum to be supported from product ramps and growth from new product categories. This countered the normally slower seasonality in the early part of this year. The company supplies the quad band module for Apple, but also counts Samsung, an Android phone maker, as a customer.

These Suppliers outperform

NXP Semiconductors NV (NASDAQ:NXPI) and OmniVision Technologies, Inc. (NASDAQ:OVTI) are giving a positive return in the past year, and for good reason. OmniVision Technologies, Inc. (NASDAQ:OVTI) earned $0.31 a share last quarter, beating estimates by $0.01 per share. Sales were also higher ($336.2 million compared to consensus estimates averaging $318.3 million). The company also forecast sales and earnings higher than consensus. It was clear that the company’s fortunes are not tied solely to Apple hardware sales.

NXP Semiconductors NV (NASDAQ:NXPI) makes NFC chips for many mobile devices, and does not rely on Apple alone. The “emerging ID” business is a growing segment NFC chips, where NXP is practically the sole supplier. Design wins for more mobile tablets and smartphones will support positive growth for the semiconductor company in the quarters ahead.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!