Apple Computer's ( AAPL) aggressive push into new consumer products is good news for hard drive maker Seagate Technology ( STX) and chipmaker SigmaTel ( SGTL).
Monday's announcements at Apple's annual Macworld trade show gave both companies a boost: In recent trading on Tuesday, SigmaTel was up $2.83 a share, or 8%, to $36.84; Seagate gained 22 cents, or 1.3%, to $17.40 a share. Seagate supplies drives for Apple's just-announced Mac mini and the iPod mini, according to Goldman Sachs analyst Laura Congiliaro. Revenue from the new products will likely serve to lessen Seagate's seasonal first-half slump, she said in a note to clients. Seagate already makes drives used in Apple's older computers, and Conigliaro believes that "there is some evidence suggesting that Seagate might be growing into the supplier of choice for Apple's higher-growth new products." Goldman has a banking relationship with Seagate. For its part, SigmaTel sells controllers for use in Apple's new iPod Shuffle, a low-priced music player also announced Tuesday, according to Thomas Weisel Partners. Component suppliers are only rarely identified by manufacturers, but analysts at CIBC markets also said in a note that they believe SigmaTel is supplying chips for the iPod Shuffle. Weisel analyst Jason Pflaum said the iPod revenue "will likely exceed" the high end of the company's forecast for its fourth quarter. Weisel has an investment banking relationship with SigmaTel.