How sweet is it to win a slice of the Apple iPhone 6 business?
It should be like candy for analog chipmaker and IBD Leaderboard stock Skyworks Solutions, a key supplier for the new Apple smartphone.
The Apple iPhone 6 and iPhone 6 Plus use chips from Skyworks, Avago Technologies and other firms, according to findings from tech repair firm iFixit, which opened up iPhones bought in Melbourne, Australia.
Multiple power amplifier components from Skyworks were found in the iPhone 6 teardowns, Sterne Agee analyst Vijay Rakesh told IBD.
In terms of iPhone 6 component suppliers, "big winners" are Skyworks, Avago and NXP Semiconductors "with content up 30%-90% from previous iPhone 5s models," he said in a research note.
Rakesh estimates about $4 worth of content comes from Skyworks in every new iPhone 6. The opportunity for Skyworks, he adds, depends on the number of iPhones Apple sells.
He cites Apple's Sept. 22 announcement that it sold over 10 million new iPhone 6 and iPhone 6 Plus models, a record, just three days after the launch Sept. 19.
"Apple is always a big catalyst for all smartphone component suppliers," Rakesh said.
Stock Amps Up
Skyworks' stock on Sept. 19 notched its highest closing price since 2000, ending at 57.68 after the Apple iPhone 6 teardown news. It closed up 3.4% Wednesday to 58.84. But Skyworks powered up well before the Apple iPhone 6 debut. It has gained 106% this year.
In an interview with IBD, Skyworks CEO David Aldrich would not comment on whether Skyworks is a supplier for the iPhone 6, although the iFixit teardowns found the technology inside.
"I am not at liberty to comment about specific companies," he said. "But Skyworks has become very successful at increasing our content with all of our smartphone customers."
Skyworks develops and manufacturers high-performance analog semiconductor products. Its portfolio includes amplifiers, attenuators, battery chargers, circulators, DC/DC converters, demodulators, detectors, diodes, directional couplers and infrastructure RF (radio frequency) subsystems.
Its semiconductors enable wireless connectivity in smartphones, tablets and other devices.
Leveraging core technologies, Skyworks supports automotive, broadband, wireless infrastructure, energy management, GPS, industrial, medical, military, wireless networking, smartphone and tablet applications.
Skyworks has been on a roll on the financial front. It's seen double-digit sales and earnings growth in all but one of the past seven quarters. Its growth accelerated in the most recent quarter to the fastest pace since mid-2011. Earnings rose 54% to 83 cents a share. Sales climbed 35% to $587 million.