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Apple (AAPL) supplier SkyWorks Solutions (SWKS) saw its shares fall by almost 25% on Thursday when the semiconductor company said it is losing things with the iPhone maker of one of his competitors, which analysts believe is the Broadcom (AVGO).
Skyworks makes chips used in Apple devices that are crucial for wireless communication. According to the company, Apple accounted for 72% of its approximately $ 1 billion in income for the quarter of December. And 85% of Apple’s turnover came from the sale of SkyWorks components for the iPhone from Apple.
While the quarterly results of SkyWorks on Wednesday after the expectations of Wall Street Analysts at the top of Wall Street’s expectations, CFO Kris Sennesael said in a call after the win that Apple is now dual-sourcing chips that came exclusively from SkyWorks. Apple’s move to dual-source radio frequency components for the iPhone 17 would reduce his demand for SkyWorks’ products by 20% to 25%, Sennesael said. Stifel, Raymond James and TD Cowen analysts believe that the second supplier of Apple Broadcom is.
“Despite our rich product range, we did not get the result we have focused,” said Sennesael. “Although we are disappointed about this result, we remain steadfast in our dedication to invest and innovate in our technological road cards.”
Skyworks had already lost part of his company with Apple to Qualcomm (QCOM) last year, Stifel analyst Ruben Roy noted on Thursday and downgrade the shares to a hold -rating.
TD Cowen analyst Krish Sankar said in a note to investors on Thursday that Apple’s last step could have an impact of $ 600 million on the skyworks turnover. That is not small potatoes for SkyWorks, which saw a turnover of $ 4.2 billion for the full year in 2024. Sankar maintained his hold -rating in stock.
In the meantime, Roy said that the company is the share of Apple orders “is not a likely event” until Apple is completely shifting to making its own 5G modems for his iPhones, instead of using Qualcomms, which would have a further chance of income for SkyWorks bid.
Citi analyst Atif Malik agreed to investors in his own remark.
“Apple who moved to his own modem would still be a headwind for SkyWorks, because their content on the internal modem is good,” he said. Malik maintained his sales rating in the stock.
Skyworks also announced a CEO shake-up on Wednesday that caused more uncertainty. The company said that former Intel director Philip Brace will replace the old CEO Liam Griffin.
Stifel’s Roy wrote about the change: “Although we believe that Mr. Brace is coming to SWKs with a well -completed experience, including a position as executive chairman at Inseego, who is in the process of what seems to be a successful turning point, the timing timing Change given in the short term dynamics raises more questions. “
