The tech giant's strong quarter puts the spotlight on its supply chain. The names below are the ones investors may want to trade in the hopes of solid results in the quarters ahead.
Data and comments are from RBC Capital Markets tech analyst Amit Daryanani.
"Apple procures ~20% of global NAND and ~mid-single digits of global DRAM. Apple indicated memory price has started to decline and expects further cost improvement, which are a negative for the memory ecosystem. Key memory suppliers are Samsung, SK Hynix, Micron (MU) , and Western Digital (WDC) ."
"Sub 10% of sales from Apple: Analog Devices' (ADI) Consumer segment decreased 17% quarter over quarter. Analog Devices has content in 3D Touch/Force Touch processors as well as a dual-camera processor; however, it is not supplying 3D touch/Force Touch component into iPhone X."
"7-8% of sales from Apple: Amphenol (APH) exposure to Apple is mainly iPhone and iPad antenna and connectors. APH saw its Mobile Devices segment grow 27% year over year in June quarter and guided September quarter to increase significantly quarter over quarter. For the full-year calendar year 2018, Amphenol expects Mobile Devices to increase mid-to-high teens."
"~25% of sales from Apple: The company supplies RF components, connectivity combo chips, touch controllers and wireless charging components in iPhone 8/8+, and there is additional Force Touch content associated with the OLED screen in iPhone X. We estimate that Broadcom (AVGO) has ~25% revenue exposure to Apple. Wireless segment is guided to remain flattish quarter over quarter to decline slightly."
"~20-25% of sales from Apple: We estimate that Jabil (JBL) has ~20-25% revenue exposure to Apple, mainly in iPhone and iPad casings. Jabil guided for its DMS segment to be $2.2 billion in the August quarter (flat year over year)."