This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Which Apple Suppliers are the Most Vulnerable?

Stocks in this article: AAPL BRCM CRUS INVN QCOM SWKS SYNA

What's bad for Apple is bad for Apple Suppliers. Should a falling share price concern investors in Apple's suppliers?

Disappointing guidance from Apple (AAPL) was enough of a reason for investors to sell and pull its shares below $500. Worse still was the damage done to shares of Apple suppliers Cirrus Logic (CRUS) and InvenSense (INVN). These companies also dropped sharply after they reported quarterly results. Are things really that bad for Apple’s suppliers?

Click on the chart below to view Apple's share price over time. 

Cirrus Logic started the selloff by guiding fourth quarter revenue lower. The consensus revenue estimate from analysts was $173.8 million, but Cirrus Logic expects revenue to be as low as $130 million. In its recently reported Q3, sales from its audio product segment dropped by nearly one-third to $206.4M. 

InvenSense reported Q3 earnings of $0.15 per share on revenue of $66.7M. Both figures missed consensus. GAAP earnings were $0.00 per share (the company actually lost $0.2 million). The company did add cash during the quarter: cash and cash equivalents rose to $266.3M, compared to $200.3M last year.

Two noteworthy figures in the statement of income are on the expense lines. Costs (SG&A and R&D) rose for both:

Screen Shot 2014-02-03 at 3.05.24 PM

Higher R&D activity means the company is adding innovation for its products, which is good news for investors.
In addition, cash flows from operating activities indicates higher inventories. Cash flows rose to $29.6M, compared to $6.56M last year.


Risks for Cirrus Logic will rise if Apple’s growth slows in the next few years. More than 80% of revenue may come from Apple alone. Conversely, investors might look instead at companies less reliant on Apple. This includes Broadcom (BRCM), Qualcomm (QCOM), Synaptics (SYNA), and Skyworks (SWKS).

Do you think Apple's forward guidance could spell trouble for its suppliers?  Use the list below to begin your analysis and let us know what you think in the comments. 

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs