Apple Stock is Up and Key Suppliers Could Follow

September 14, 2018
1325 Views

Apple (NASDAQ: AAPL) confirmed speculation about new iPhone devices at a private developer’s and Suppliers conference on Wednesday of this week. New models are just around the corner, and the Cupertino based company is preparing to market its most expensive iPhones so far.

Apple stock is up this week, as was expected by most analysts.

Apple Still the Growth Stock to Buy

Apple became the first $1 Trillion publicly traded company this year. Investor confidence is as high as it has ever been, and it doesn’t appear at this stage that Apple will stop growing. For the year to date, Apple stock value has increased by 33.79%. During this week, value increased 2.31%.

The iPhone XS Max, which Apple announced on Wednesday, will retail for $1,099 and features edge-to-edge screen technology that customers have been demanding after seeing Samsung’s 2018 offerings.

The company also surprised the market by announcing a $749 iPhone XR, a more affordable flagship that should be able to compete with phones in the Android ecosystem.

Although Apple is not completely reinventing the smartphone market, they are iterating on their successful designs, and market reception has so far been positive. With massive brand power and desirability, it is expected that the latest refreshed iPhones will help to drive revenue for the next three quarters.

Don’t Count Out the Suppliers

While Apple researches and develops much of its own technology, including its microprocessors, it still relies on key partners to develop things like audio chips, basic components, and biometric scanners.

The following supplier stocks could be good investments as Apple continues to grow.

  • Texas Instruments (NASDAQ: TXN) is a longtime supplier of essential Apple components. Although unannounced, it is expected that the two companies will maintain their relationship for the new iPhone X models.
  • Cirrus Logic (NASDAQ: CRUS) is the dominant audio chip supplier for Apple, providing technology for iPhone 8 and X models.
  • NXP Semiconductors (NASDAQ: NXPI) is another potential Apple related investment. This company provides nearfield communication chips that are used in iPhones and the Apple Watch.

Fresh Confidence for the World’s Most Valuable Company

Apple continues to hold its dominant market position and it remains the most powerful brand in the world. Apple is a mainstay for growth portfolios, and its suppliers could provide opportunity for smaller investments and diversification.

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