Vendors to see profitability in coming months with the success of iPhone 5

Apple’s new iPhone 5 has received good reviews so far. The result is an increase in its shares to an all-time high of $682.98. But it is not Apple alone, who is benefiting from the initial success of the smartphone. Vendors are also up in stock exchanges, which provide different kinds of components to the big giant.

Apple has always been of few words on the names of its suppliers but the word gets out eventually. The main suppliers are Foxconn from China, Samsung from Korea and Sharp from Japan. However, there are many other vendors that provide as small items as electronic connectors and as big as casings.

Alongside Foxconn, one of the major suppliers for Apple, Jabil Circuit makes the iPhone 5’s aluminium casing. So far, the retro aluminium-cum-glass screen amalgamation has received positive feedback. Jabil is expected to churn the most profitability from the success of the new smartphone. It receives 10 percent of the revenues from a set sold from Apple. Its shares rose 4 percent on Thursday, the following day of the iPhone 5’s official launch.

“The new aluminum unibody casing with a glass screen bodes well for JBL’s specialized services,” wrote RBC analyst Amit Daryanani.

RBC also considers Molex to be one of the primary beneficiaries of iPhone 5 success. The company provides multiple electronic connectors for the motherboard. It will receive 5 percent of the revenue. Shares were up 1.9 percent.

“(It) gives us confidence (that) Molex can achieve its target of 8% to 10% revenue growth in fiscal 2013,” Daryanani wrote.

The infamous A6 processor is making tons of press these days. The processor is manufactured by Samsung, who have purchased the manufacturing license from chip architects ARM Holdings.ARM’s share price was up 3.6 percent.

Other suppliers benefiting from iPhone 5 sales are Skyworks Solutions, Qualcomm, NXP Semiconductors, Broadcom and Fairchild Semiconductor.

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Posted by Usman Khalid on Sep 15 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.