Jabil, Qualcomm: Apple Supplier Stocks To Buy Ahead Of iPhone 13 Launch - Forbes | Canada News Media
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Jabil, Qualcomm: Apple Supplier Stocks To Buy Ahead Of iPhone 13 Launch – Forbes

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3 years ago

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Our indicative theme on Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones and other iDevices – is up by about 15% year-to-date, outperforming Apple stock, which is up by about 11% year-to-date. However, the broader S&P 500 has fared slightly better, rising by about 17% year to date. It’s likely that the stocks in our theme could continue to rise in the near term, for a couple of reasons. Apple is poised to launch its new iPhones this fall (likely called iPhone 13 or iPhone 12 S) and Bloomberg has indicated that Apple is likely to produce about 20% more of the new devices initially than it did for the iPhone 12. This should translate into higher volumes for Apple’s component suppliers. Moreover, Apple’s iPhones tend to use pricier components with each successive model year. For instance, the components that go into the iPhone 12 cost about 21% more compared to the iPhone 11, per Counterpoint Research. Although the changes this year are likely to be more incremental compared to last year’s big redesign, it’s likely that the cost of the bill of materials for the new iPhones will be higher, and this could bode well for Apple’s suppliers.

Within our theme, Jabil Circuit a company that makes encasements for iPhones and iPads, has been the strongest performer, with its stock rising by about 39%. On the other side, modem supplier Qualcomm

QCOM
, which is a fabless semiconductor company, has been the worst performer, declining by about 3% this year, partly due to the current chip scarcity and reports that Apple has started developing its own modem chips.

[6/7/2021] Apple Suppliers Will Continue To Outperform Apple Stock

Our indicative theme on Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones and other iDevices – is up by about 11% year-to-date, outperforming Apple stock, which remains down by about 3% year-to-date. However, the S&P 500 has fared slightly better, rising by about 13% year to date. So will the outperformance versus Apple continue? We think it will, at least in the near-to-medium term. Demand for Apple’s first generation of 5G iPhones has remained robust, with the company reporting 65% growth in iPhone sales over Q2 FY’21, with demand expanding across all geographic segments. However, much of these gains are likely priced into Apple stock. The next iPhone, likely due this fall, is expected to be a more iterative update, and Apple’s growth rates are likely to moderate significantly and this is also likely to reflect on its stock. Component suppliers, on the other hand, could see a more secular demand trend, considering that the 5G cycle is really just getting started, with mid-range and lower-end smartphone OEMs expected to launch more 5G enabled devices. These companies are also likely to benefit from demand for more sophisticated components and higher per-device content. Moreover, most of the component suppliers in our theme trade at valuation multiples that are below Apple (and the broader market) and stand to benefit as investors continue to rotate out of high-growth stocks to value names.

Within our theme, Jabil Circuit a company that makes encasements for iPhones and iPad has been the strongest performer, with its stock rising by about 36%. On the other hand, modem supplier Qualcomm, which is a fabless semiconductor company, has been the worst performer, declining by about -12% this year, partly due to the current chip scarcity and reports that Apple has started developing its own modem chips.

[3/18/2021] Apple Supplier Stocks Impacted By Semiconductor Crunch?

Our indicative theme on Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones, iPads, and other Apple devices, is up by about 4.2% year-to-date compared to the 5.3% return on the S&P 500. Demand for the new 5G iPhones has mostly been strong, with Nikkei reporting that Apple intends to produce around 230 million handsets in 2021, an increase of over 11% year-over-year. That said, there are some near-term concerns for suppliers. Semiconductor demand is outstripping supply this year, with key industries such as automotive and consumer electronics being impacted. In fact, even smartphone and memory chip behemoth Samsung has warned that it might need to delay the launch of its new Galaxy Note smartphone due to the chip supply crunch. Now although Apple – the largest smartphone maker by revenues and profits – is likely to be prioritized, some of its suppliers could feel the impact in terms of higher costs or lower volume growth.

[2/16/2021] Apple Supplier Stocks Are Riding Strong iPhone Demand

Our indicative theme on Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones and other Apple devices – is up by about 37% since the end of 2019, compared to a gain of about 22% on the S&P 500. The theme has also returned about 7.5% year-to-date, versus 5% for the S&P 500. Much of the gains have come from the launch of the iPhone 12, which has seen stronger than expected demand. iPhone revenues jumped by around 17% over Q1 2021 and the device helped Apple post its largest-ever holiday quarter. This has had a positive impact on Apple suppliers across the board, with all seven companies in our theme beating earnings expectations over their most recent quarterly reports. Within our theme, the strongest performer year-to-date has been Skyworks Solutions which is up around 24% driven by a significant earnings beat. On the other hand, Qualcomm stock has lagged, declining by about 3% year-to-date, as its revenues over the most recent quarter fell slightly short of expectations. Moreover, there were reports in December that Apple had started working on its own modem chips for future devices and this also likely hurt Qualcomm stock.

Will this momentum hold up for Apple suppliers? It seems likely. Several iPhone models remained back-ordered through the holidays and as Apple fulfills demand, it should help suppliers. Moreover, the iPhone looks poised for a strong 2021 overall, and we project that Apple’s iPhone revenues will rise by about 15% this year, after posting a small decline in FY’20. Moreover, the broader consumer electronics market should see demand hold up post-Covid, helping suppliers. That said, one key concern for many players will be the current semiconductor fabrication shortages, which could impact supply levels and margins.

See our dashboard on Apple Component Supplier Stocks for a detailed look at the companies in our theme and how they have fared in recent years.

[12/28/2020] How Are Apple Suppliers Faring

The stock prices of Apple suppliers have fared well since the launch of the 5G iPhone 12 in mid-October. The new handsets have seen robust demand with multiple models remaining out of stock globally. This is a positive development for Apple’s suppliers, considering that the 5G devices are apparently more expensive to produce with more advanced semiconductors and components. Our indicative theme on Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones and other Apple devices – is up by about 20% over the last two months on an equally weighted basis, compared to the S&P 500 which was up by about 12% over the same period. Jabil Circuit – a company that makes encasements for iPhones – has been the strongest performer in recent weeks, with its stock rising by about 35% since late October, driven by an earnings beat and higher Revenue guidance for the fiscal year. Qorvo – a semiconductor player that supplies RF solutions – has also done well, rising by over 30% since late October.

[Updated 11/5/2020] Apple Suppliers Poised To Gain Big From iPhone 12

The iPhone 12 lineup is likely to drive a big upgrade cycle for Apple, considering the 5G radios, new screen size options, and refreshed industrial design. While Apple stock – which is up about 55% this year – looks slightly overvalued in our view, Apple suppliers could see more upside from the new devices. Shipments of the new iPhones are likely to be higher compared to last year and components could also be pricier considering the increased costs associated with 5G. There is already some evidence that suppliers are benefiting from the new devices. Earlier this week, Apple’s 5G modem supplier Qualcomm published a strong set of Q4 results, driven in part by 5G chips used in the new iPhone, while Skyworks

SWKS
– a supplier of radio frequency components – also posted strong quarterly numbers. Our indicative theme of Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for iPhones and other Apple devices – is up by about 16% year-to-date, on an equally weighted basis, compared to the S&P 500 which has gained about 7%. Qualcomm, up 46% year-to-date, is a major driver of the theme’s return this year. On the other hand, Jabil Circuit was the worst performer, down roughly -17% this year. Below is a bit more about these companies.

Qualcomm sells application processors, modems, and licenses wireless technology to key handset manufacturers. The company is seen as a leader in 5G technology and could be a big beneficiary as the broader smartphone market transitions to the new technology over the next few years. The stock is up by about 46% year-to-date.

Qorvo, Inc.

QRVO
, is a semiconductor player that supplies RF solutions focused on cellular, Ultra-wideband, and Wi-Fi to manufacturers of mobile products such as smartphones, wearables, and tablets. The stock is up by about 15% year-to-date.

QRVO

Skyworks Solutions, manufactures semiconductors for use in radio frequency systems and components such as switches and amplifiers. It’s likely that more complex requirements for 5G iPhones will drive demand for the company. The stock has rallied 15% this year.

Jabil Circuit, is a manufacturing firm that makes encasements for Apple’s iPhones and iPad. Jabil

JBL
stock is down -17% this year, as the Coronavirus impacted the company’s electronic manufacturing services business.

Corning

GLW
produces specialty glass, ceramics, and related materials. The company has been the key supplier of the glass used on iPhones, including the tougher “Ceramic Shield” glass used on the iPhone 12. The stock is up 15% this year.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016.

See all Trefis Featured Analyses and Download Trefis Data here

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How to Preorder the PlayStation 5 Pro in Canada

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3 days ago

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September 10, 2024

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Sony has made it easy for Canadian consumers to preorder the PlayStation 5 Pro in Canada directly from PlayStation’s official website. Here’s how:

  • Visit the Official Website: Go to direct.playstation.com and navigate to the PS5 Pro section once preorders go live on September 26, 2024.
  • Create or Log in to Your PlayStation Account: If you don’t have a PlayStation account, you will need to create one. Existing users can simply log in to proceed.
  • Place Your Preorder: Once logged in, follow the instructions to preorder your PS5 Pro. Ensure you have a valid payment method ready and double-check your shipping information for accuracy.

Preorder Through Major Canadian Retailers

While preordering directly from PlayStation is a popular option, you can also secure your PS5 Pro through trusted Canadian retailers. These retailers are expected to offer preorders on or after September 26:

  • Best Buy Canada
  • Walmart Canada
  • EB Games (GameStop)
  • Amazon Canada
  • The Source

Steps to Preorder via Canadian Retailers:

  • Visit Retailer Websites: Search for “PlayStation 5 Pro” on the website of your preferred retailer starting on September 26.
  • Create or Log in to Your Account: If you’re shopping online, having an account with the retailer can speed up the preorder process.
  • Preorder in Store: For those who prefer in-person shopping, check with local stores regarding availability and preorder policies.

3. Sign Up for Notifications

Many retailers and websites offer the option to sign up for notifications when the preorder goes live. If you’re worried about missing out due to high demand, this can be a useful option.

  • Visit Retailer Sites: Look for a “Notify Me” or “Email Alerts” option and enter your email to stay informed.
  • Use PlayStation Alerts: Sign up for notifications directly through Sony to be one of the first to know when preorders are available.

4. Prepare for High Demand

Preordering the PS5 Pro is expected to be competitive, with high demand likely to result in quick sellouts, just as with the initial release of the original PS5. To maximize your chances of securing a preorder:

  • Act Quickly: Be prepared to place your order as soon as preorders open. Timing is key, as stock can run out within minutes.
  • Double-Check Payment Information: Ensure your credit card or payment method is ready to go. Any delays during the checkout process could result in losing your spot.
  • Stay Informed: Monitor PlayStation and retailer websites for updates on restocks or additional preorder windows.

Final Thoughts

The PlayStation 5 Pro is set to take gaming to the next level with its enhanced performance, graphics, and new features. Canadian gamers should be ready to act fast when preorders open on September 26, 2024, to secure their console ahead of the holiday season. Whether you choose to preorder through PlayStation’s official website or your preferred retailer, following the steps outlined above will help ensure a smooth and successful preorder experience.

For more details on the PS5 Pro and to preorder, visit direct.playstation.com or stay tuned to updates from major Canadian retailers.

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Introducing the PlayStation 5 Pro: The Next Evolution in Gaming

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3 days ago

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September 10, 2024

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Since the PlayStation 5 (PS5) launched four years ago, PlayStation has continuously evolved to meet the demands of its players. Today, we are excited to announce the next step in this journey: the PlayStation 5 Pro. Designed for the most dedicated players and game creators, the PS5 Pro brings groundbreaking advancements in gaming hardware, raising the bar for what’s possible.

Key Features of the PS5 Pro

The PS5 Pro comes equipped with several key performance enhancements, addressing the requests of gamers for smoother, higher-quality graphics at a consistent 60 frames per second (FPS). The console’s standout features include:

  • Upgraded GPU: The PS5 Pro’s GPU boasts 67% more Compute Units than the current PS5, combined with 28% faster memory. This allows for up to 45% faster rendering speeds, ensuring a smoother gaming experience.
  • Advanced Ray Tracing: Ray tracing capabilities have been significantly enhanced, with reflections and refractions of light being processed at double or triple the speed of the current PS5, creating more dynamic visuals.
  • AI-Driven Upscaling: Introducing PlayStation Spectral Super Resolution, an AI-based upscaling technology that adds extraordinary detail to images, resulting in sharper image clarity.
  • Backward Compatibility & Game Boost: More than 8,500 PS4 games playable on PS5 Pro will benefit from PS5 Pro Game Boost, stabilizing or enhancing performance. PS4 games will also see improved resolution on select titles.
  • VRR & 8K Support: The PS5 Pro supports Variable Refresh Rate (VRR) and 8K gaming for the ultimate visual experience, while also launching with the latest wireless technology, Wi-Fi 7, in supported regions.

Optimized Games & Patches

Game creators have quickly embraced the new technology that comes with the PS5 Pro. Many games will receive free updates to take full advantage of the console’s new features, labeled as PS5 Pro Enhanced. Some of the highly anticipated titles include:

  • Alan Wake 2
  • Assassin’s Creed: Shadows
  • Demon’s Souls
  • Dragon’s Dogma 2
  • Final Fantasy 7 Rebirth
  • Gran Turismo 7
  • Marvel’s Spider-Man 2
  • Ratchet & Clank: Rift Apart
  • Horizon Forbidden West

These updates will allow players to experience their favorite games at a higher fidelity, taking full advantage of the console’s improved graphics and performance.

 

 

Design & Compatibility

Maintaining consistency within the PS5 family, the PS5 Pro retains the same height and width as the original PS5 model. Players will also have the option to add an Ultra HD Blu-ray Disc Drive or swap console covers when available.

Additionally, the PS5 Pro is fully compatible with all existing PS5 accessories, including the PlayStation VR2, DualSense Edge, Pulse Elite, and Access controller. This ensures seamless integration into your current gaming setup.

Pricing & Availability

The PS5 Pro will be available starting November 7, 2024, at a manufacturer’s suggested retail price (MSRP) of:

  • $699.99 USD
  • $949.99 CAD
  • £699.99 GBP
  • €799.99 EUR
  • ¥119,980 JPY

Each PS5 Pro comes with a 2TB SSD, a DualSense wireless controller, and a copy of Astro’s Playroom pre-installed. Pre-orders begin on September 26, 2024, and the console will be available at participating retailers and directly from PlayStation via direct.playstation.com.

The launch of the PS5 Pro marks a new chapter in PlayStation’s commitment to delivering cutting-edge gaming experiences. Whether players choose the standard PS5 or the PS5 Pro, PlayStation aims to provide the best possible gaming experience for everyone.

Preorder your PS5 Pro and step into the next generation of gaming this holiday season.

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Google Unveils AI-Powered Pixel 9 Lineup Ahead of Apple’s iPhone 16 Release

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1 month ago

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August 13, 2024

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Google has launched its next generation of Pixel phones, setting the stage for a head-to-head competition with Apple as both tech giants aim to integrate more advanced artificial intelligence (AI) features into their flagship devices. The unveiling took place near Google’s Mountain View headquarters, marking an early debut for the Pixel 9 lineup, which is designed to showcase the latest advancements in AI technology.

The Pixel 9 series, although a minor player in global smartphone sales, is a crucial platform for Google to demonstrate the cutting-edge capabilities of its Android operating system. With AI at the core of its strategy, Google is positioning the Pixel 9 phones as vessels for the transformative potential of AI, a trend that is expected to revolutionize the way people interact with technology.

Rick Osterloh, Google’s senior vice president overseeing the Pixel phones, emphasized the company’s commitment to AI, stating, “We are obsessed with the idea that AI can make life easier and more productive for people.” This echoes the narrative Apple is likely to push when it unveils its iPhone 16, which is also expected to feature advanced AI capabilities.

The Pixel 9 lineup will be the first to fully integrate Google’s Gemini AI technology, designed to enhance user experience through more natural, conversational interactions. The Gemini assistant, which features 10 different human-like voices, can perform a wide array of tasks, particularly if users allow access to their emails and documents.

In an on-stage demonstration, the Gemini assistant showcased its ability to generate creative ideas and even analyze images, although it did experience some hiccups when asked to identify a concert poster for singer Sabrina Carpenter.

To support these AI-driven features, Google has equipped the Pixel 9 with a special chip that enables many AI processes to be handled directly on the device. This not only improves performance but also enhances user privacy and security by reducing the need to send data to remote servers.

Google’s aggressive push into AI with the Pixel 9 comes as Apple prepares to unveil its iPhone 16, which is expected to feature its own AI advancements. However, Google’s decision to offer a one-year free subscription to its advanced Gemini Assistant, valued at $240, may pressure Apple to reconsider any plans to charge for its AI services.

The standard Pixel 9 will be priced at $800, a $100 increase from last year, while the Pixel 9 Pro will range between $1,000 and $1,100, depending on the model. Google also announced the next iteration of its foldable Pixel phone, priced at $1,800.

In addition to the new Pixel phones, Google also revealed updates to its Pixel Watch and wireless earbuds, directly challenging Apple’s dominance in the wearable tech market. These products, like the Pixel 9, are designed to integrate seamlessly with Google’s AI-driven ecosystem.

Google’s event took place against the backdrop of a significant legal challenge, with a judge recently ruling that its search engine constitutes an illegal monopoly. This ruling could lead to further court proceedings that may force Google to make significant changes to its business practices, potentially impacting its Android software or other key components of its $2 trillion empire.

Despite these legal hurdles, Google is pressing forward with its vision of an AI-powered future, using its latest devices to showcase what it believes will be the next big leap in technology. As the battle for AI supremacy heats up, consumers can expect both Google and Apple to push the boundaries of what their devices can do, making the choice between them more compelling than ever.

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