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.
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.
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.
LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?
It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.
Here’s how you can prepare your digital life for your survivors:
Apple
The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.
For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.
You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.
Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.
Google
Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.
When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.
You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.
There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.
Facebook and Instagram
Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.
When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.
The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.
You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.
TikTok
The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.
Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.
X
It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.
Passwords
Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?
Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.
But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.
___
Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.
LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.
The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.
The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.
“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”
San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.
Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”
“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.
The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.
DUBAI, United Arab Emirates (AP) — The tiny Mideast nation of Kuwait has banned the release of the video game “Call of Duty: Black Ops 6,” which features the late Iraqi dictator Saddam Hussein and is set in part in the 1990s Gulf War.
The video game, a first-person shooter, follows CIA operators fighting at times in the United States and also in the Middle East. Game-play trailers for the game show burning oilfields, a painful reminder for Kuwaitis who saw Iraqis set fire to the fields, causing vast ecological and economic damage. Iraqi troops damaged or set fire to over 700 wells.
There also are images of Saddam and Iraq’s old three-star flag in the footage released by developers ahead of the game’s launch. The game’s multiplayer section, a popular feature of the series, includes what appears to be a desert shootout in Kuwait called Scud after the Soviet missiles Saddam fired in the war. Another is called Babylon, after the ancient city in Iraq.
Activision acknowledged in a statement that the game “has not been approved for release in Kuwait,” but did not elaborate.
“All pre-orders in Kuwait will be cancelled and refunded to the original point of purchase,” the company said. “We remain hopeful that local authorities will reconsider, and allow players in Kuwait to enjoy this all-new experience in the Black Ops series.”
Kuwait’s Media Ministry did not respond to requests for comment from The Associated Press over the decision.
“Call of Duty,” which first began in 2003 as a first-person shooter set in World War II, has expanded into an empire worth billions of dollars now owned by Microsoft. But it also has been controversial as its gameplay entered the realm of geopolitics. China and Russia both banned chapters in the franchise. In 2009, an entry in the gaming franchise allowed players to take part in a militant attack at a Russian airport, killing civilians.
But there have been other games recently that won praise for their handling of the Mideast. Ubisoft’s “Assassin’s Creed: Mirage” published last year won praise for its portrayal of Baghdad during the Islamic Golden Age in the 9th century.
