How Is Texas Instruments’ Sales Dependent Upon Apple?

June 15th, 2016 by Trefis Team
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TXN: Texas Instruments logo
TXN
Texas Instruments

Texas Instruments (NYSE:TXN) sells its products to more than 100,000 customers; however, its single largest customer in 2015 was Apple (NYSE:AAPL). The smartphone maker accounted for approximately 11% of TI’s revenues in the year. TI sells touch screen controllers, power management chips and control devices for iPhones and iPads to Apple. In the past, TI’s revenue has seen a strong correlation with Apple’s iPhone launch. Given below is a chart which shows how TI’s revenue in Q3 in the last 4 years has exceeded other quarters.


Apple_TXN_REvenue_Q3

This trend seen above can be attributed to the launch of Apple iPhone around the same time. Below is a list of launch dates for various iPhone models:

APPL_TXN_iPhone_Model_Q&A

Further, TI’s revenue declined by 5% YoY in Q1’16 as Apple’s iPhone sales slumped in this quarter for the first time since their introduction. Going ahead, we can expect TI to again see higher revenues around the time of next iPhone launch. For now, it has been rumored that iPhone 7 can hit the market around September this year.

Notes:

1) If you like or have any questions about our analysis, please write us back at content@trefis.com. We hope such lean communication sparks thinking, and encourages you to ask questions. The purpose of these analyses is to help you focus only on a few important things. 
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Texas Instruments
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