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Shares of Apple Suppliers Fell after Revised Analyst Forecasts

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Shares of Skyworks fell 3.6%

Shares of Apple supplier Skyworks Solutions (SWKS) fell 3.6% on December 14, 2015, after three investment banks lowered Apple’s (AAPL) iPhone estimates. Skyworks provides radio frequency chips used in smartphones.

In Skyworks’ 4Q15 results, Apple contributed approximately 4.4% of the firms’ total revenues, indicating dependence on the tech heavyweight. However, analysts remained bullish on Skyworks, as the company generates a large part of its revenues from the Chinese smartphone space. Skyworks has an exposure of over 80% to China and the stock fell by over 20% between July–September due to lower iPhone demand in China, as well as the market crash in the country.

Skyworks has an exposure of over 80% to China. The stock fell by over 20% from July to September 2015 due to lower iPhone demand in China, as well as the market crash in the country.

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Shares of Qorvo fell 7%

Shares of Qorvo fell by 7% on December 14, 2015, due to the above-mentioned reasons. Qorvo is iPhone’s antenna switch supplier, and its revenues are expected to decrease due to lower iPhone sales in the first two quarters of 2016.

Skyworks Solutions (SWKS), Qorvo (QRVO), Cavium (CAVM), and Taiwan Semiconductors—four of Apple’s (AAPL) suppliers—saw their share prices take a hit in the last week of June on news that Apple (AAPL) will request a price break on semiconductor chips. This would negatively impact revenues of the firms in this industry.

Investors who are bullish on Apple can consider the PowerShares QQQ Trust ETF (QQQ) and the iShares Russell Top 200 Growth ETF (IWY). Apple constitutes 12.5% of QQQ and 8.9% of IWY.

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