SWKS: Apple suppliers and growth

Smart phone growth slowing?

A maturing market is set to take unit shipments lower for the industry in 2016
Huberty thinks Apple will continue to take in North America and China.

Morgan Stanley’s Katy Huberty today writes that smartphone sales are set to be weaker next year than even her reduced expectations, though she sees upside for Apple (AAPL) taking share with the iPhone.

Not sure if you can see this one…

Apple (NASDAQ:AAPL) supplier Avago Technologies (NASDAQ:AVGO) might jettison its unprofitable industrial segment in lieu of a renewed focus on smartphone chips, MKM analyst Ian Ing suggests.
This comes as Avago and fellow Apple chip suppliers like Skyworks Solutions (NASDAQ:SWKS), Qorvo (NASDAQ:QRVO), NXP Semiconductors (NASDAQ:NXPI), Qualcomm (NASDAQ:QCOM) and Cirrus Logic (NASDAQ:CRUS) face continued constraints from slowing growth in the iPhone market, Ing wrote.

Avago is up in trading today.

Credit Suisse analyst suggested earlier this month that Apple had cut its November orders by 10%. Shares of Apple and its suppliers tumbled on that report…

Avago is in IBD’s Electronic-Semiconductor Fabless Group, where it has the fifth-highest Composite Rating of 92, out of a possible 99. The higher CR performers in the group are Integrated Device Technology (NASDAQ:IDTI), ARM Holdings (NASDAQ:ARMH), Monolithic Power Systems (NASDAQ:MPWR) and Inphi (NYSE:IPHI).


Look at the following from June:


The reports from IBD and Barrons are not good for any smartphone supplier and not for AAPL or SWKS.

But this is just a prediction, no one knows what the actual numbers will be for AAPL or with SWKS.

It will be interesting to see what Saul thinks about these report and what he thinks the right response to it is.

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Of course, the confusion is even bigger. Goldman Sachs added AAPL to his conviction list (strong buy I think) just a few days ago.
We all know how important are the sells of iPhones to AAPL balance sheet. AAPL couldn’t be doing well if the sells of smart phone are slowing down.
So someone is wrong, either the reports or Goldman Sachs.
Both Goldman and such reports have been right and wrong before…
I guess that life are not easy.
For now as an investor in SWKS, I’ll wait and see.
It will be interesting to get Saul perspective on the issue since this is his #1 position.

Goldman Sachs added AAPL to his conviction list
Isn’t that their classic reverse trade? Pushing the stock to clients and shorting in their own accounts? I would take that as a sell signal.