The Apple (AAPL) Halo Back? This Supplier is on Fire Thanks to Strong Apple Demand
Here's what RBC Capital Markets analyst Doug Freedman said about Dialog and the Apple impact, which could be translated to other suppliers and Apple itself:
"Demand from iOS devices including iPhones and iPads are driving the upside to 4Q13 revenues at Dialog. We believe that management may have taken a cautious view of Apple demand given rapid changes that occurred at the end of last year, that have proven unnecessary this year."
He adds, "Our view is that this reflects stronger builds from AAPL's iP5s and iPad product lines. Recall that AAPL accounts for ~67% of total Dialog revenues, by our estimates, or ~80% of revenues from its Mobile Systems division."
On the read-thru for other semis, he said: "Read-thru to other Apple related names include BRCM, SNDK, AVGO, CRUS. Investors should be aware that Dialog sees demand from all iOS devices including WiFi only iPads, which maybe stronger than cellular only content providers such as AVGO.