Skyworks Loses Apple Business to Competitor
Summary:
Skyworks Solutions (SWKS) stock plunged 24.67% on Thursday after the company revealed it is losing business with Apple (AAPL) to a competitor, believed to be Broadcom (AVGO). The loss is due to Apple's decision to dual-source radio frequency components for the iPhone 17, reducing Skyworks' demand by 20-25%. Skyworks had previously lost some Apple business to Qualcomm (QCOM) in 2023. Analysts estimate the loss could impact Skyworks' 2025 revenue by $600 million. Skyworks also announced a CEO shake-up, with former Intel executive Philip Brace replacing Liam Griffin.
Key Points:
* Skyworks supplied crucial wireless communication chips for Apple devices.
* Apple previously accounted for 72% of Skyworks' revenue.
* Apple is now dual-sourcing chips that were previously solely supplied by Skyworks.
* SWKS stock loss reflects concerns about reduced Apple business.
* Analysts believe Broadcom is the second supplier.
* Skyworks faces challenges to regain Apple share until Apple produces its own 5G modems.
* CEO change creates uncertainty due to near-term dynamics.