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

NXP still faces risks. QUALCOMM, Inc. (NASDAQ:QCOM) entered the NFC market recently, and the Snapdragon S4 processor maker could release an NFC chip in mass volume for device makers by the third quarter of this year. Integrating the NFC chip would give QUALCOMM, Inc. (NASDAQ:QCOM) and edge. The chip giant also has a large market share for smartphone processors, and Qualcomm could leverage that strength to win sales for NFC chips.

Foolish Bottom Line

When a company relies too heavily for sales on a single customer, that is a red flag. This means that the companies discussed, such as NXP, Skyworks, and OmniVision are good investing ideas. Negative news around Apple could pull down these companies, creating a buying opportunity. One company to avoid is Cirrus Logic. Cirrus Logic relies too heavily on Apple for its fortunes, whilst the other suppliers have a broader customer base. As sales slow for Apple, due to expectations for an iPhone 5 refresh, Cirrus Logic shares will be hurt the most.

The article Avoid this Supplier as Apple Sales Decline originally appeared on Fool.com and is written by Chris Lau.

Chris Lau has no position in any stocks mentioned. The Motley Fool recommends NXP Semiconductors. The Motley Fool owns shares of Cirrus Logic. Chris is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.