Apple Inc. (NASDAQ:AAPL) recently released a list of its top suppliers for materials, manufacturing and assembly of its products which showed that China remains a key manufacturing base and India is ramping up production as well.
Why It Matters:
BofA Securities released a research note based on the list of Apple's suppliers which named companies that could potentially benefit from an Apple product cycle.
BofA named electronics manufacturers Jabil, Inc. (NYSE:JBL) and Flex, Ltd. (NASDAQ:FLEX) as potential beneficiaries and noted Apple accounted for 17% of Jabil's revenue in 2023.
Amphenol Corporation (NYSE:APH) provides connectors and antennas for the iPhone, and BofA estimates Apple accounts for single-digit revenue at Amphenol. BofA also noted glass maker Corning Incorporated (NYSE:GLW) remained on Apple's 2023 supplier list.
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The firm maintained its Buy rating on Apple with a $225 price target highlighting higher growth in Services revenue and continuing capital returns. BofA also expects a strong iPhone upgrade cycle in 2025 driven by the need for the latest hardware in order to enable generative-AI features.
AAPL, JBL, FLEX, APH, GLW Price Action: According to Benzinga Pro, Apple shares are up 3.24% at $174.75, Jabil shares are down 0.66% at $117.49, Flex shares are up 0.16% at $29.02, Amphenol shares are up 0.86% at $121.53 and Corning shares are up 0.85% at $31.60 at the time of publication Monday.
Image: Courtesy of Apple, Inc.