What’s The Outlook Like For Apple Vendors’ Stocks?

-14.83%
Downside
212
Market
180
Trefis
AAPL: Apple logo
AAPL
Apple

Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 13% year-to-date, roughly in line with the S&P 500, although it has underperformed Apple stock (NASDAQ: AAPL), which has gained about 50% year-to-date. Now the macro-environment has been somewhat favorable for tech and futuristic stocks, with inflation cooling, and the Federal Reserve holding back on interest rate hikes. The semiconductor supply crunch is also easing and this could be helping the companies in our theme to an extent. Separately, the launch of Apple’s new mixed-reality headset is also seen as a positive for the broader Apple ecosystem. Although we don’t see the device as moving the needle for Apple or suppliers in the near term, the high levels of engineering and software on the device do reinforce investor confidence that Apple is ahead of the curve when it comes to the next-generation of computing devices.

There are a couple of other factors that could benefit Apple suppliers in the near term. Apple’s next generation of iPhones, due this fall, is likely to sport more premium specifications and could sport higher prices, particularly for the Pro models. This could benefit suppliers to an extent. Moreover, the broader industry transition to 5G wireless networks is also likely to help Apple’s suppliers, who are largely focused on wireless chipsets and related semiconductors. For example, Android device vendors have been looking to equip more of their mid-range and lower-end models with 5G capabilities.

Within our theme, Jabil stock (JBL) has been the strongest performer, rising by about 55% year-to-date. On the other side, Texas Instruments has been one of the weaker performers with its stock up by just about 7% year-to-date.

Relevant Articles
  1. Can AI Launch Drive Apple Stock To $300?
  2. Will Rising Margins And Stock Buybacks Drive Apple Higher?
  3. China In Focus As Apple Reports Q2 Results
  4. Down 10% This Year, Will Gen AI Tools Help Apple Stock Recover?
  5. Down 5% Over The Last Month, Will Strong iPhone Sales Help Apple Offset Mac Headwinds In Q1?
  6. After Over A 40% Rally In 2023, Will Antitrust And iPhone Issues Hurt Apple Stock?

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

Returns Jun 2023
MTD [1]
2023
YTD [1]
2017-23
Total [2]
 TXN Return 2% 7% 142%
 S&P 500 Return 5% 15% 96%
 Trefis Multi-Strategy Portfolio 8% 18% 271%

[1] Month-to-date and year-to-date as of 6/30/2023
[2] Cumulative total returns since the end of 2016

Invest with Trefis Market Beating Portfolios

See all Trefis Price Estimates