Sector Snap: Apple iPhone suppliers inch higher
NEW YORK (AP) — Shares of several chip makers and other manufactures that supply parts for Apple Inc.'s new iPhone 5 got a boost Friday, the day the phone went on sale.
Blogs such as iFixit and Chipworks disassembled the phone to see what's inside. The "teardowns" found chips from Qualcomm Inc., memory chips called "DRAM" from Elpida Memory Inc. and other parts from Avago Technologies Ltd., Skyworks Solutions Inc. and TriQuint Semiconductor Inc.
Sterne Agee analyst Vijay Rakesh recommended buying Skyworks stock considering a recent price decline, along with Avago and Qualcomm. He noted that there are three Skyworks chips in the latest iPhone compared with just one in the prior model, the 4S. There are also two Avago chips versus one in the 4S, he added.
Shares of Skyworks rose $1.30, or 5.4 percent, to $25.33 in midday trading. The stock dropped by 18.5 percent on Thursday after the chip maker offered what Rakesh called "modest" guidance amid "significantly higher" expectations.
Qualcomm stock rose 23 cents to $64.58. Shares of Avago jumped $1.83, or 5.4 percent, to $35.58. That stock has traded in a 52-week range of $27.39 to $39.22.
Micron Technology Inc., which has agreed to buy Elpida, fell 9 cents to $6.37. TriQuint rose 10 cents to $5.73. It has traded between $3.97 and $7.76 in the past 52 weeks.
Apple shares added $5.41 at $704.11. Earlier, the stock hit $705.07, its highest level ever.