Investing Inside The iPhone 12
It's finally here, Apple's 5G iPhone. Investors have been looking forward to this for more than a year and it's finally here.
Thanks to the great folks at iFixit, we get to see what's inside of Apple's iPhone 12 without having to buy and open our own.
What iFixit's teardown revealed is that there are several publicly traded companies that benefit from the iPhone's success, and that exposure to these companies could lead to big profits for investors down the road.
We've tried to color code the company name and the part they provide with the color of the squares iFixit used to highlight the part. Each company's name is linked to the company's investor relations page for investors seeking more information. To close the whole thing out we look at how the companies stack up against each other by looking at their price-to-earnings, price-to-sales, price-to-book and more.
What You're Looking At: The Logic Board of the iPhone 12
Avago 8200 high/mid power amplifier with integrated duplexer
Apple APL109 4343S00437 PMIC
Kioxia NAND flash memory, 64GBs.
Texas Instruments SN2611A0 battery charging IC
STMicroelectronics STWPA1-3033ABM wireless charging IC
STMicroelectronics STB601A04 power management
Skyworks Sky5 RF module
Qualcomm PMX55 power management
Apple 338S00564 power management
Qualcomm SMR526 RF transceiver
Bosch Sensortec unknown accelerometer
We haven't done a break down like this in some time, but it appears all of the same players are still involved. Companies like Skyworks Solutions, NXPI, Qualcomm, and Texas Instruments have been mainstays in the last several iPhone.
From the chart above the ROIC (Return on Invested Capital) of Apple, Texas Instruments, and Skyworks Solutions' really stands out. To verify that these companies are creating long-term value for their shareholders we would need to compare their ROIC to each company's weighted average cost of capital.
Investors have been betting big on Apple since mid 2019 in hopes that consumers run out and grab the iPhone 12 because it is 5G enabled. From the MKBHD iPhone12 video views count, its obvious that there is genuine interest in the product from potential consumers. If the iPhone 12 is a big win for Apple it will also be a big win for the companies who were able to get their components inside the iPhone 12.
That's a look inside the iPhone 12 from an investors point of view. We hope you found value in this and we look forward to peeking inside other popular consumer tech products to see where we can put our investment dollars to work.
Thanks again to iFixit for their break down.