By Chris Lau for Kapitall.
are true that
is booking orders for the development of 68 million iPhones, Apple’s stock could hold its highs. The phone maker’s stock is up 63% from its low, but is still in deep value territory. Its forward P/E is still around 14.
Apple reports quarterly results on July 22 2014, at which time investors could expect steady or even a slight decline in revenue growth from the phone division. If it is the latter, customers might be holding off for the iPhone 6.
Cirrus Logic in Focus
Risks rise when a company relies too much on one company for revenue.
Cirrus Logic (CRUS)
is one example of an Apple supplier stock that fits this analysis, but higher iPhone demand will benefit the company disproportionately in a good way. Its stock is already up in anticipation of an iPhone refresh.
The firm no longer supplies audio amp slots for the iPad Air, but still supplies the audio codec slots for Apple.
Another stock to watch is
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
. The firm might supply 20 nm process chips for Apple’s A8 CPU. Next year, the process will improve to 16 nm.
For June, the semiconductor firm reported revenue of $1.99 billion, up 11.7% from last year. Revenue for the second quarter was $6.04 billion.
Apple is in a good position to gain market share from Samsung. Samsung reported weaker growth for its Galaxy device. When Apple refreshes its iPhone, TSM and Cirrus could resume its move upward.
Click on the interactive chart to view data over time.
1. Apple Inc.
): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $472.72B, most recent closing price at $527.55.