Dallas, Texas – (Financialstrends) – 01/08/2014 – Skyworks Solutions Inc (NASDAQ:SWKS) shows smart growth as it beats other manufacturers to supply Apple Inc’s manufacturer Foxconn. The trend forward began in the last quarter of 2013, after a drop in sales due to ‘negative news’ on some of the iPhones. However, after a second wind bought by the iPhone 5C and 5S launch, Skyworks has indeed been going skywards.
Skyworks Solutions Inc (NASDAQ:SWKS) has had a good fourth quarter as well and guidance for the current quarter too, though not exciting, has brought in good rally.
Apple drives Skyworks via Foxconn
Skyworks has hugely benefitted from the services it provides for the iPhone 5 series. The contractor had to in fact beat earlier providers such as Peregrine, and along with RF Micro Devices is the current antenna switch spot provider. Additionally, as the number of iPhones being sold drives higher, Apple Inc goes on expansion spree and increase production. This has meant that it now outsources production phases to more contractors. Skyworks Solutions Inc (NASDAQ:SWKS) has definitely benefitted from this expansion as well. As one of the original providers of chips for Apple devices, the revenue earnings have been substantial for this hardware and services provider.
Market trends indicate that the nearly three-fourth 2G subscribers of mobile phones in China are expected to move to low-cost smartphone devices, with iPhones heading the list, Skyworks’ will definitely improve earnings in the next few quarters. Besides, Skyworks Solutions Inc (NASDAQ:SWKS) close relationship with other technology providers such as Spreadtrum as well as MediaTek indicated that the transition to multi-brand low-cost, cutting technology revolution in China is likely to happen later this year and Skyworks will continue to ride this wave as well, in terms of revenue growth!
Finally, Skyworks Solutions Inc (NASDAQ:SWKS) relationship with GE, which is currently driving the world towards’ industrial Internet’ or machine-to-machine connectivity, will ensure Skyworks will have a big finger in this explosive segment as well. More than enough reasons for Skyworks stock to rally this quarter!