Barclays: Focus on QCOM, AAPL, BRCM, ARMH & Samsung in Soft Handset Climate

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Barclays suggests keeping the focus on Qualcomm (Nasdaq: QCOM), Apple (Nasdaq: AAPL), Broadcom (Nasdaq: BRCM), Arm Holdings (Nasdaq: ARMH) and Samsung in the current environment. The firm has lowered its 2012/13 handset unit volume growth forecast from 8% to 6%, with checks from Apple, Samsung, HTC, Research in Motion (Nasdaq: RIMM), Nokia (NYSE: NOK), ZTE & Huawei. Barclays now sees Q2 sales forecast of approx 407 million, 10-15 million less than previously forecasted.

Analyst, Jeff Kvaal, said, "Major new launches (Galaxy S 3, iPhone 5) are contributing to channel destocking and soft sell in. Slowing macro conditions also
contribute to leaner channel inventories and slow sell through."

For Mobility, Barclays prefers QUALCOMM (Nasdaq: QCOM), despite some demand drag. For FY12, EPS estimate is lowered from $3.88 to $3.77 and FY13 from $4.45 to $4.40. Overall, longer term demand and 28nm capacity additions should remain on track and offer a healthy recovery in Q1 of FY13. Less liked names including Nokia (NYSE: NOK), RIMM, Ericsson (Nasdaq: ERIC) and HTC.

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