Mobile on a roll
TriQuint is poised to benefit from growth in data by providing content for mobile devices as well. With smartphones becoming more complex with various frequency bands, TriQuint Semiconductor (NASDAQ:TQNT)’s radio frequency solutions should help the new phones overcome such problems. TriQuint is innovating in this field as well, as it is focused on developing high performance filters and high efficiency amplifiers instead of older power amplifier modules.
TriQuint had supplied the power amplifier module for the Apple Inc. (NASDAQ:AAPL) iPhone 5, and with the next generation of the device being reportedly under production, it’s not surprising that TriQuint Semiconductor (NASDAQ:TQNT)’s order book was overflowing in the previous quarter with a book-to-bill ratio of 1.17 (with Foxconn accounting for 22% of revenue). Also, a cheaper version of the iPhone is reported to be on the way as Apple Inc. (NASDAQ:AAPL) focuses on budget consumers.
Apple Inc. (NASDAQ:AAPL)’s cheap iPhone 4 is already helping its push in the emerging markets, and a new device with cheaper components and a mid-tier price tag could do even better considering that the iPhone 4 is three years old now. So, a cheaper iPhone should increase TriQuint’s addressable market and increase sales of its mobile products.
Mobile is the biggest catalyst for TriQuint Semiconductor (NASDAQ:TQNT) as it derives more than 60% of its revenue from it. Throw in another smartphone titan in the form of Samsung, to whom TriQuint had supplied content for the Galaxy S4, and it becomes clear that the company is a good play on smartphones. Also, it counts BlackBerry Ltd (NASDAQ:BBRY) and some smartphone manufacturers out of China as clients as well, which gives the company a pretty big market to sell its products.
The bottom line
The possibility of TriQuint Semiconductor (NASDAQ:TQNT) turning in a profit this year is pretty strong now and the company has got enough drivers to get better going forward. So, if you have been riding this terrific turnaround story this year, there’s no reason to abandon it now.
The article A Smartphone Play You Would Regret Missing originally appeared on Fool.com and is written by Harsh Chauhan.
Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL). The Motley Fool owns shares of Apple and TriQuint Semiconductor (NASDAQ:TQNT). Harsh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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