suppliers - What We're Reading - StockBuz2024-03-29T13:54:11Zhttp://stockbuz.ning.com/articles/feed/tag/suppliersWinners (or Losers) With Apples New Watchhttp://stockbuz.ning.com/articles/winners-or-losers-with-apples-new-watch2015-05-03T15:17:57.000Z2015-05-03T15:17:57.000ZStockBuzhttp://stockbuz.ning.com/members/1t2xbcvddkrir<div><p><a target="_blank" href="http://cdn.macrumors.com/article-new/2014/09/applewatch1.jpg"><img class="align-left" src="http://cdn.macrumors.com/article-new/2014/09/applewatch1.jpg?width=300" width="300" /></a>The jury's still out on Apples new watch launch, especially it's longer term demand and <a href="http://www.theguardian.com/technology/2015/apr/30/apple-watch-shortages-due-to-faulty-taptic-engine-from-one-of-two-suppliers" target="_blank">shortages due to two suppliers</a> have already shown.  I thought though (thanks to <a href="http://seekingalpha.com/news/2480896-brcm-stm-adi-idti-sndk-mu-land-apple-watch-design-wins" target="_blank">SeekingAlpha</a>) we could take a look at it's current suppliers:</p>
<ul>
<li>iPhone/iPad combo chip supplier Broadcom (NASDAQ:<a href="http://seekingalpha.com/symbol/brcm" title="Broadcom Corporation">BRCM</a>) is providing a Wi-Fi/Bluetooth/NFC/FM radio combo chip for the Apple Watch (NASDAQ:<a href="http://seekingalpha.com/symbol/aapl" title="Apple Inc.">AAPL</a>), according to an ABI Research <a href="https://www.abiresearch.com/press/apple-watch-insides-pcb-details-revealed-for-the-f/" target="_blank">teardown</a> of the Watch's S1 chip module. As expected, NXP supplies a complementary NFC controller.</li>
<li>The teardown also uncovered a 6-axis STMicroelectronics (NYSE:<a href="http://seekingalpha.com/symbol/stm" title="STMicroelectronics NV">STM</a>) motion sensor (accelerometer/gyproscope). There has been <a href="http://seekingalpha.com/news/2426166-rosenblatt-invensense-wont-lose-meaningful-s6-share-to-stm" target="_blank">some debate</a> about whether InvenSense (NYSE:<a href="http://seekingalpha.com/symbol/invn" title="InvenSense">INVN</a>) will be a motion sensor supplier for the Watch, as it is for the iPhone 6.</li>
<li>Analog Devices (NASDAQ:<a href="http://seekingalpha.com/symbol/adi" title="Analog Devices Inc.">ADI</a>) supplies a touch controller IC. Barclays <a href="http://seekingalpha.com/news/2398736-adi-plus-8_1-percent-barclays-upgrades-reports-of-apple-force-touch-wins" target="_blank">reported in March</a> ADI had scored multiple design wins to enable Apple's Force Touch pressure-based response feature (supported by the Watch) on future iPhones/iPads.</li>
<li>IDT (NASDAQ:<a href="http://seekingalpha.com/symbol/idti" title="Integrated Device Technology, Inc.">IDTI</a>) supplies a wireless charging IC. The design win comes after Samsung opted to use a Texas Instruments charging IC within the Galaxy S6; IDC <a href="http://seekingalpha.com/news/2340436-idt-lands-galaxy-s6-charging-pad-deal-reveals-new-chip" target="_blank">supplies a chip</a> for the S6's charging pad. Dialog Semi (<a href="http://seekingalpha.com/symbol/dlgnf" title="Dialog Semiconductor Plc">OTC:DLGNF</a>) provides a power management chip.</li>
<li>SanDisk/Toshiba (NASDAQ:<a href="http://seekingalpha.com/symbol/sndk" title="SanDisk Corporation">SNDK</a>) supply an 8GB NAND flash chip, and Micron/Elpida (NASDAQ:<a href="http://seekingalpha.com/symbol/mu" title="Micron Technology Inc.">MU</a>) a 4Gb (512MB) SRAM chip. SRAM typically carries higher ASPs than DRAM for a given amount of capacity (it's also faster).</li>
<li>In the near-term (and perhaps longer), Watch volumes will likely amount to a small fraction of iPhone volumes - whereas Apple sold 192.7M iPhones in 2014, IDC forecasts 15.9M 2015 Watch shipments, and more bullish estimates are still generally in the ~20M range. However, strong growth is expected over the next several years, and the first-gen Watch serves as a valuable reference win when competing for other smartwatch/wearable designs.</li>
</ul>
<p>It certainly cannot hurt to look at these names from a technical standpoint.  Whether it <em>survives</em> over the longer term, we shall see.  But buy on pullbacks near supports and limit your risks. Pick and choose wisely.</p>
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