Apple supplier Skyworks tracking record drop as competition dents mobile segment outlook

Inseego

06/02/2025 15:11

(Updates, recasts throughout)
** Shares of chip co Skyworks Solutions  SWKS.O  plummet 25.8%
to $64.80, on course for their biggest one-day pct decline on
record, as competition intensifies
    ** SWKS shares hit lowest since Jan 2019
** Apple  AAPL.O  supplier late Weds said expects rev declines
in its mobile segment and projected Q2 profits below estimates
    ** At least 8 Wall Street brokerages chop their PTs reacting
to the news; Stifel downgrades to 'hold' from 'buy', Mizuho cuts
to 'neutral' from 'outperform'
** TD Cowen says Skyworks on earnings call indicated lead mobile
customer AAPL decided to dual source RF (radio frequency)
components with a competitor, which the analysts believe is
Broadcom AVGO.O
** BofA says SWKS expected to lose 20%-25% of its content in the
Fall 2026 iPhone 17, a significant hit as AAPL accounts for 72%
of its sales, with AVGO likely sharing this content and no
guarantee of regaining it in FY27
    ** Also, co said current CEO Liam Griffin to step down and
be replaced by Inseego  INSG.O  exec chairman Philip Brace, who
began his career at Intel  INTC.O 
    ** Of 29 analysts covering SWKS, recommendation breakdown is
3 "strong buy" or "buy", 23 "hold" and 3 "sell" or "strong
sell"; median PT of $75 down from $110 on Nov 6 - LSEG
    ** With move on the session, stock down about 35% over the
past 12 months

(Reporting by Lance Tupper in New York and Sanchayaita Roy in
Bengaluru)
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))