Wall Street is buzzing over the new series of Apple Inc. (Nasdaq: AAPL) products unveiled on Tuesday, but Apple won’t be the only big winner from the new family of iPhones. If the iPhone 8 and iPhone X models sell as well as most analysts are expecting, key iPhone suppliers could see meaningful revenue boosts as well.
According to JPMorgan analyst Harlan Sur, Broadcom (AVGO) and Qorvo (QRVO) are particularly well-positioned for the coming iPhone cycle. JPMorgan expects both companies to benefit from increasing content share in the latest iPhone models. Broadcom’s technology will drive the iPhone X’s OLED screen touch control. In addition, Sur says Broadcom benefits from increased connectivity content in the new phones.
“In total, Broadcom has pointed to a 40 percent increase in blended content in the new iPhone models, and we believe the company’s non-RF content (wireless charging, touch controller, Wi-Fi/Bluetooth, GPS) is increasing by $3 to $4 per iPhone versus last year’s models,” Sur says.
For Qorvo, JPMorgan estimates increased antenna tuning will help drive a 20 percent increase in overall content compared to the iPhone 7.
The new iPhone could also provide a shot in the arm for a handful of other key suppliers as well. JPMorgan expects Intel Corp. (INTC) to gain iPhone modem share from Qualcomm (QCOM). Knowles Corp. (KN) remains a key Apple microphone supplier and will likely also provide content for Apple’s new Homepod connected home speaker expected to be released in time for the holiday season.
The iPhone 8 Plus and iPhone X models come equipped with 3GB of random access memory, which translates to big business for DRAM leader Micron Technology (MU) and NAND leaders Samsung and Western Digital Corp. (WDC).
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