Apple and Its Watch Suppliers Are Big Winners

Posted by Kirhat | Saturday, May 16, 2015 | | 0 comments »

Apple Watch Supplier
Nobody in their right mind will dispute that Apple plays a very important position as tech kingmaker. Thanks to the immense popularity of its cadre of iDevices, as well as its generally forward-thinking approach to products, Apple's product decisions influence other firms ranging from industry powers like Samsung to tiny start-ups around the world.

Nowhere is Apple's corporate clout more evident than Apple's relationship with its suppliers, who can see their businesses transformed overnight by Apple's favor or scorn.

With the recent release of the Apple Watch, investors have been eagerly waiting to see which companies might benefit from Apple's latest major product. The most obvious ones are the following:
  1. One of the best-known names to land in the Apple Watch is Broadcom , whose BCM43342 powers the Apple Watch's Wi-Fi, Bluetooth, NFC, and FM radio transmission capabilities. Broadcom's BCM43342 appears to enjoy faster wireless throughput than the BCM4334 found in the iPhone 5S, despite combining the other above functionalities all on a single die.
  2. Powering the memory slots are Toshiba and Micron Technology, which provide the NAND flash memory and DRAM storage systems, respectively, for the Apple Watch. Especially considering their absence from other Apple devices like the iPhone 6, this is a nice win for both Toshiba and Micron.
  3. As expected, Apple veteran supplier NXP Semiconductors was chosen, once again, to provide the NFC controller spot in the Apple Watch sport. NXP Semiconductors currently holds this same spot in both the iPhone 6 and iPad Air 2. NXP Semiconductors investors should certainly enjoy seeing NXP extend its powerful placement within Apple's device ecosystem. Nothing especially surprising here, but a nice win for NXP Semi shareholders either way.
  4. As rumors of its possible placement in upcoming Apple devices have swirled, Analog Devices landed the touch controller placement in the Apple Watch. This could be just the beginning, though. Those rumors claimed that Analog Devices had secured a deal to provide touch controller functionality in upcoming iPhones and iPads. It certainly makes sense that Apple could look to use ForceTouch as a "hallmark" feature as a means of differentiating next year's iPhones, which likely won't receive a form factor upgrade.
Other winners inside the Apple Watch include names like ST Microelectronics and Integrated Device Technology. However, as the dust settles on the Apple Watch analysis, there's one company that clearly won the day with this next-gen smartwatch: Apple itself.


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