Talking Numbers

Three Surprise Stocks That May Benefit from Apple’s New iPhone

Talking Numbers

Apple isn't the only company that may see an uptick in revenue. John Vinh, Analyst at Pacific Crest Securities, says there are three companies that will have better top lines, but one in particular will come out a winner.

Shares in Apple are down more than 25% so far in 2013. As the tech giant is expected to release the new iPhone 5S later this year, there’s hope that it may change the fortunes of its flagging stock.

However, a few under-the-radar companies may get a boost as well – Apple’s suppliers. John Vinh, Analyst at Pacific Crest Securities, talks numbers with Talking Numbers, saying there are three companies that should see an uptick in revenue with a new iPhone.

According to Vinh, three suppliers and what they make are:

  • Cirrus Logic (CRUS): chips powering the iPhone’s speakers.
  • OmniVision (OVTI): iPhone camera’s image sensors.
  • InvesnSense (INVN): iPhone’s gyroscopes, particularly used for games.

Yet not all three will benefit the same way. Vinh also believes we can expect Apple to launch a mid-range iPhone situated between the iPhone 5S and the iPhone 4S. While that will increase revenues, it will also put pressure on two of these companies to cut their profit margins. Only one of the three will come out a true winner, according to Vinh.

Which stock does Vinh believe will gain the most with Apple’s new iPhones?

Watch the video above and watch Talking Numbers contributor, Richard Ross, Global Technical Strategist at Auerbach Grayson, analyze the charts on the stock.


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