Investing Inside the Apple HomePod
The Apple HomePod is finally here after a major delay in December. The niche home speaker by Apple has received mixed reviews since its release, which has caused Wall Street analyst to label the HomePod as a big miss for Apple, but Wall Street has it wrong - again. The Apple HomePd was a niche project from the start. It wasn't developed to compete with Alexa or Google Home. The Apple HomePod is specifically for that small niche market that is all in on the Apple Eco-system, that person with a Mac, iPhone, iPad, and Apple Music.
With all of that stated, the great people at Tech Insights did a break down of the HomePod, giving us a chance to see who provided what for the HomePod. We went through Tech Insight's teardown to see if we could locate any investment opportunities. We put the name of the manufacturer, their ticker symbol and the stock price at the time of the writing. The ticker symbols and stock prices are linked to the manufacturer's investor relations page.
So lets take a look at which companies made it inside the Apple HomePod and see if we can find any investment opportunities.
The processor is provided by Apple. (AAPL, $178.47).
The flash memory for the HomePod is provided by SK hynix. (KRX: 000660, 89,600KRW).
* Other HomePods have been spotted with Toshiba THGBX4G7D2LLDYC 16 GB NAND flash (TYO: 6502, ¥322).
The Broadcom BCM43572 provided by Broadcom. (AVGO, $260.59).
The USI 339S00450 module provided by Universal Scientific Industrial. (SHA: 601231, 13.96 CNY).
The D2186 A2 die mark 300692 provided by Dialog Semiconductor (ETR: DLG €24.97)
The Apple/Dialog 338S00100 PMIC provided by Dialog Semiconductor (ETR: DLG €24.97).
The TLC5971 LED drivers are provided by Texas Instruments (TXN, $109.97).
The Cypress CY8C4245LQI-483 PSoC 4200 provided by Cypress Semiconductor (CY, $18.46).
The MCU was provided by STMicroelectronics (STM, $24.07).
Audio and Microphones
The seven Analog Devices SSM3515B Class-D Audio amplifier provided by Analog Devices (ADI, $93.46).
The microphones in the HomePod are provided by Knowles (KN, $14.01).
The Conexant CX20810 ADC Voice Capture IC provided by Conexant Semiconductors. (SYNA, $47.65).
After reviewing the Tech Insight HomePod tear down we noticed again that Apple continues to work with the same few suppliers. It's difficult to say from looking inside one consumer electronic product if a company is worth an investment, but what it does do is help with the search for a good investment. Looking inside the HomePod has given us a good starting point for companies to research. Should we find anything worth a long term investment we will provide it in our next quarterly report or our free mini report. As always make sure to do your own research on these companies before hitting the buy button, past performance is no guarantee of future results.
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