With a late fall delivery expected for the new Apple Inc. (NASDAQ: AAPL) iPhone 6, the Apple nation awaits breathlessly for the new device and will be lining up to get it. They are not the only ones excited about the launch.
Top suppliers are getting, and will continue to get, gigantic orders from the iconic Silicon Valley company to produce components for the eagerly awaited device. In fact, suppliers in the Far East gearing up for the iPhone 6 are reportedly anticipating 20% growth from last year’s iPhone 5s launch, setting the stage for the biggest iPhone debut yet.
In a “chip-clip” piece from Oppenheimer, we found links to Digitimes, AppleInsider and other publications that gave stunning projections on the massive scale of the iPhone 6 orders. In fact, the iPhone 6 could have a bill of materials $20 to $30 per phone higher than the current iPhone 5s, largely due to the expectation of a larger display and improved camera. Improvements are being added to drive sales and product excitement.
We dug through the data looking for some of the companies that are expecting some of these massive orders.
ARM Holdings PLC (NASDAQ: ARMH) makes the list. Apple’s move to 64-bit technology has “raised the stakes” in the high-end smartphone and tablet markets. Sixty-four-bit chips are faster and more powerful. This totally revs up the performance of the new phones, and ARM is getting rave reviews for its products. There is also a very solid chance the company will be counted on again by Apple for the iPhone 6. Investors are paid a small 0.7% dividend. The Thomson/First Call consensus price target for the stock is $53.17. ARM closed Thursday at $47.79 a share.
Corning Inc. (NYSE: GLW) may be poised for a big second half of the year as bandwidth and latency needs in the Internet are pressing the limits of what is currently available. Big demand for the company’s Gorilla Glass, which Apple uses, is up as much as 30% year-over year as new smartphones hit the market.
Corning is well known for being a leading manufacturer of glass substrates for LCDs in consumer electronics. The company generates close to 30% of its revenue from its Optical Communication segment. In 2013, that division’s revenue grew 9.2% to reach $2.3 billion. Investors are paid a 1.9% dividend. The consensus price target is $22. Corning closed Tuesday at $21.67.