Will these iPhone 6 suppliers benefit from the phone's launch?

By Chris Lau for Kapitall.

iFixit's  teardown of Apple’s (AAPL) newly released iPhone 6 is telling. Sure, the usual chipmakers will benefit, but there is one supplier who is missing: Samsung. SK Hynix now replaces Samsung as the memory supplier for the device.

Apple went with the usual chip suppliers for the iPhone 6. The NFC chip and motion co-processor are supplied by NXP Semi (NXPI). Cirrus Logic (CRUS) supplies the audio codec. The Wi-Fi and touch controller appear to be supplied by Broadcom (BRCM). Shares of Broadcom reached a 52-week high of $41.65 on Friday, the day Apple released the iPhone 6 and 6S. Conversely, Cirrus is on a downward trend this month, falling to $22.23 on Friday. Investors remain nervous that Cirrus relies on Apple for a large portion of its revenue.  

Skyworks (SWKS) supplies the LTE low-band LTE, while Avago (AVGO) supplies the high-band. TriQuint (TQNT) supplies the 3G amplifier module.

Apple’s A8 SoC (or System on a Chip) and 1GB RAM sit together, as iFixit  discovered. The “H9CKNNN8KTMRWR-NTH” coding denotes SK Hynix RAM. This is a big win for Micron (MU), who provided the chip instead of Samsung. After reaching a 52-week high of $34.85 in July, Micron shares have hovered around $31.00. The stock most recently closed at $31.63. Micron is up 77.18% from a year ago and is greatly outperforming Samsung (OTCMKTS: SSNLF), which is down 9.02% during the same period:

A closer look at Micron reveals that the stock trades at a P/E of just 9.4 times, while its forward multiples are at 9. Strong iPhone 6 and 6S sales—which Apple says topped 10 million this past weekend—along with strong memory prices should accelerate profits for Micron. The rebound in PC demand and improving profitability in that segment could mean strong returns for Micron shareholders.

Written by Chris Lau

Click on the interactive chart to view data over time. 

1. Apple Inc. ( AAPL): 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 $604.54B, most recent closing price at $100.96.

 

2. Avago Technologies Limited ( AVGO): Engages in the design, development, and supply of analog semiconductor devices worldwide. Market cap at $22.53B, most recent closing price at $89.10.

 

 

3. Broadcom Corp. ( BRCM): Designs and develops semiconductors for wired and wireless communications. Market cap at $22.12B, most recent closing price at $40.89.

 

 

4. Cirrus Logic Inc. ( CRUS): Develops high-precision analog and mixed-signal integrated circuits (ICs). Market cap at $1.38B, most recent closing price at $22.20.

 

 

5. Micron Technology, Inc. ( MU): Engages in the manufacture and marketing of semiconductor devices worldwide. Market cap at $33.87B, most recent closing price at $31.63.

 

 

6. NXP Semiconductors NC ( NXPI): Provides mixed signal solutions and semiconductor components primarily in Japan, Europe, South Korea, Rest of Asia Pacific, and the Americas. Market cap at $18.12B, most recent closing price at $71.99.

 

 

7. Skyworks Solutions Inc. ( SWKS): Together with its subsidiaries, offers analog and mixed signal semiconductors worldwide. Market cap at $10.93B, most recent closing price at $57.68.

 

 

8. TriQuint Semiconductor, Inc. ( TQNT): Supplies modules, components, and foundry services to communications companies worldwide. Market cap at $3.42B, most recent closing price at $19.57.

 

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Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

 

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