Four Companies That Should Rise, But Not Fall, With Apple
TriQuint Semiconductor designs, manufactures and supplies high-performance RF modules, components and foundry services. TriQuint is one of only two bulk acoustic wave (BAW) providers (along with Avago) and is selling out those parts and adding more BAW capacity. Demands on communications infrastructure and specialty products for military and aerospace add to TriQuint's long term prospect and investment profile.
Exposure To Apple: TriQuint had early success with Apple, but could not meet the required volume of component orders. TriQuint added capacity, but saw its role in the iPhone diminish. The company is recovering as the industry's need for filters expands.
Bottom Line: TriQuint is rebuilding their business based on new products. Doubling BAW capacity over the next year should create upside margin potential. High-margin networks and defense segments should also help to boost margins.
RF Micro Devices learnt a hard lesson in 2011 when their largest client Nokia experienced rapidly declining sales. The company was forced to lay off employees and was a wake up call for companies not to be so dependent on Apple. I believe that the companies I have listed should be a good investment consideration when factoring in the reality that these companies have a diversified product offering as they have capacity to grow with Apple or Samsung… or both.