Apple's iPhone 16 handsets will provide a business lift for a number of component suppliers. But Cirrus Logic and Broadcom are the biggest beneficiaries, according to KeyBanc Capital Markets.
Cirrus Logic will benefit from Apple using its parts for camera upgrades on the iPhone 16 series, KeyBanc analysts Brandon Nispel and John Vinh said in a client note late Monday. Apple introduced its latest handsets at a product launch event Monday.
"Positive implications" for Cirrus Logic include the iPhone 16 Pro upgrade to the tetraprism lens design, joining the Pro Max model, they said. Cirrus Logic also likely will provide the haptics driver for the new camera control button and controllers for new Ultra Wide cameras across the iPhone 16 family.
Meanwhile, Apple's move to upgrade all iPhone 16 handsets to the Wi-Fi 7 standard will give a sales boost to Broadcom, they said.
The Apple event had "moderately positive implications" for Analog Devices because it's likely to make the force sensor for the camera control button, they said.
IPhone 16 Suppliers On IBD Tech Leaders List
Meanwhile, the iPhone 16 has "slightly positive implications" for Qualcomm, Nispel and Vinh said. That's because Qualcomm is likely to see increased radio-frequency chip content in the iPhone 16. Skyworks Solutions is seen losing RF content to Qualcomm this round, they said.
KeyBanc rates Analog Devices, Broadcom, Cirrus Logic and Qualcomm as overweight, or buy. The firm rates Skyworks as sector weight, or neutral.
Elsewhere in the Apple supply chain, Taiwan Semiconductor Manufacturing is producing the A18 and A18 Pro chips for the iPhone 16 lineup. Those chips are made at 3-nanometer scale. The industry measures circuit widths on chips in nanometers, which are one-billionth of a meter.
Taiwan Semi on Tuesday reported sales for the month of August that were up 33% year over year in local currency, keeping it on track to meet third-quarter targets.
Apple, Broadcom and Cirrus Logic are on the IBD Tech Leaders list.
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