Over the years, we have made a lot of money by focusing on the suppliers of components that go into new hot products.
Opinions on the iPhone 5 and Apple AAPL stock may vary, but it is undeniable that Apple is going to sell millions of iPhone 5s. Some analysts estimate that over 250 million of the phones will be sold.
We disagree with such high estimates, nonetheless it doesn’t change the point that there is a gold mine of opportunities among Apple suppliers.
Here is a list of Apple suppliers that are easy to trade in the United States and are worth considering:
The processor in the iPhone 5 is based on ARM ARMH architecture and manufactured by Samsung. ARM receives royalties.
Qualcomm QCOM is a big winner as the iPhone 5 supports LTE using the company’s parts, including RF transceivers and baseband processors.
Skyworks SWKS is providing power amplifier modules and antenna switch modules. The amount of Skyworks content in the iPhone 5 topped expectations, but Skyworks has been losing non-Apple business. The stock is currently oversold on earnings disappointment.
Broadcom BRCM is another big winner. The company is supplying a touchscreen controller. The stock is reasonably priced.
Sony SNE is also a big winner. The company is providing battery displays and secondary camera modules. Sony is also likely one of the sources of primary camera modules.
The company CRUS provides audio codec and audio amplifier. This is a momentum stock that has just gone through a massive short squeeze. The stock is overbought but subject to further short squeezes…..Read more at MarketWatch