Apple's iPhone Sales Outlook Boosts Supplier Qorvo's Prospects

A recent report highlights strong demand for Apple's iPhone 16, forecasting a boost in sales. This positive outlook for Apple not only surges its stock potential but also appears to favor suppliers like Qorvo, who are expecting enhanced revenue due to increased chip content in new models.

Date: 28-09-2024

AI Rating: 7

The report demonstrates an optimistic outlook for both Apple and its supplier Qorvo. With Apple entering the generative AI smartphone market and aiming to sell 90 million units of its new smartphones by 2024, investors can expect a positive impact on stock prices.

Apple's expanding delivery time delays for the new iPhones indicate strong demand, which suggests a rising revenue growth potential. This would enhance the overall sales performance for Apple and could signal strong earnings for the company.

Additionally, Qorvo reported a considerable year-over-year revenue increase of 36%, reaching $887 million, alongside a significant improvement in non-GAAP earnings from $0.34 per share to $0.87 per share. The forecast suggests that Qorvo's earnings are expected to grow at an annual rate of 28% over the next two years. Such growth in EPS is likely to draw investor attention, driving stock prices upward.

Both companies are poised for enhanced profit margins due to the strong sales of the new iPhones. Qorvo specifically is expected to benefit from increased chip content per unit sold, leading to a better financial trajectory going forward. The presence of an installed base of 300 million iPhones not updated within four years also serves to amplify Apple's market opportunity and potential revenue growth. Lastly, the anticipated improvement in Qorvo's margins may continue, indicating further upward movement in its stock price.

Stocks: AAPL QRVO