Even the best runs in the stock market must come to an end, or at least slow way down. Apple Inc. (NASDAQ: AAPL) reported very disappointing results this week, and for the first time in 13 years posted year-over-year revenue declines. There are myriad reasons why, most of which have been regurgitated ad nauseum by the financial press and media. One thing is for sure, if Apple is slowing down, some of its top vendors may be as well.
A new RBC research report notes that the weaker March quarter and lowered June quarter guidance paint a deepening negative outlook for the Apple supply chain, as the report raises more concern on the iPhone 6s cycle. One thing that is a positive for some of the vendors is they will have an increasing portion of the iPhone 7 cycle, and some on Wall Street feel that the demand will increase for the new phone.
RBC has covered the Apple vendors for some time. We looked through their report and were surprised at the percentage of business that three chip companies do with Apple.
Cirrus Logic
This company gets a staggering 65% to 70% of its revenue from Apple, according to RBC. Cirrus Logic Inc. (NASDAQ: CRUS) is a fabless semiconductor company that develops analog and mixed-signal integrated circuits for a range of consumer and industrial markets. It offers audio products, including codecs, analog-to-digital converters, digital-to-analog converters, active noise cancelling circuits, amplifiers and micro-electromechanical system microphones, as well as standalone digital signal processors. Those audio products are used in various mobile applications, such as smartphones, tablets, portable media players, wearables and accessories like headsets and headphones.
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