Apple’s (AAPL) iPhone 8 smartphone hasn’t been announced yet, but analysts are already picking winners and losers among component suppliers for the rumored device.
Rosenblatt Securities analyst Jun Zhang on Friday predicted that Cypress Semiconductor (CY), Dialog Semiconductor, Maxim Integrated Products (MXIM) and Qorvo (QRVO) would be content-gainers in Apple’s next-generation handset.
Component-share losers in the iPhone 8 likely will include Analog Devices (ADI), Cirrus Logic (CRUS) and Qualcomm (QCOM), he said.
Cypress could gain a USB type-C driver in the handset, Zhang said. Maxim likely has a design win for the power-management chip for the OLED display, he said. Qorvo will gain content, but at a lower gross margin, he said.
Qualcomm is likely to be a loser as Apple shifts more to Intel (INTC) wireless chips. Apple and Qualcomm are engaged in a nasty legal battle over wireless-patent royalties and terms.
Cirrus Logic is expected to lose power amplifier share to Maxim, Zhang said. And Analog Devices lost the Force Touch component business to a competitor for the OLED iPhone.
Apple is expected to introduce the iPhone 8 in September, along with iPhone 7S handsets, which are upgraded versions of the current iPhone 7 devices. The iPhone 8 is likely to be in very short supply initially because of production snags that Apple’s contract manufacturers have experienced. Component suppliers have had trouble integrating the fingerprint security sensor into the OLED display, analysts say.
The iPhone 8 is expected to be Apple’s biggest smartphone redesign since the iPhone 6, which came out in September 2014. The iPhone 8 is rumored to feature a 5.8-inch borderless OLED screen, glass-sandwich design, wireless charging and augmented-reality capability. Apple is expected to replace the physical home button with a virtual on-screen button, which will allow for a larger display.
Many Wall Street analysts expect the iPhone 8 — Apple’s 11th-generation handset and 10th-anniversary smartphone — to kick off a “supercycle” of upgrade purchases among iPhone users.
Earlier this month, Pacific Crest Securities identified chipmakers Broadcom (AVGO), Cirrus Logic and Skyworks Solutions (SWKS) as three companies likely to benefit from the release of the iPhone 8.
Audio-chip maker Cirrus Logic has the highest exposure to Apple of the three companies spotlighted by Pacific Crest. Cirrus gets about 75% of its revenue from Apple.
Broadcom is best positioned to make content gains in the iPhone 8 with its radio-frequency, Wi-Fi and wireless-charging chips, Pacific Crest said. Broadcom gets 15% to 20% of its revenue from Apple.
Skyworks also is seen making content gains in the new iPhone, Pacific Crest said. Skyworks gets about 40% of its revenue from Apple.
On Wednesday, investment bank Cowen said Apple’s contract manufacturers might not reach mass production of the iPhone 8 until late October or early November, three months later than usual for the annual iPhone update.