Apple (NASDAQ:AAPL) has officially become the largest company in the world by market cap. Several years ago, it would have been unheard of to think a company making iPods would revolutionize not only the smartphone industry, but the computer industry as well. iPhones and iPads have become the norm in society.
As companies try to figure out why Apple can market itself so well, Apple continues to take market share. As the world is busy analyzing Apple, we should start looking at its suppliers of parts. Here is a list of six companies that do business with Apple and will benefit from Apple's success.
OmniVision Technologies, Inc. (NASDAQ:OVTI) designs, develops, and markets semiconductor image-sensor devices.
Omnivision makes cameras for iPhones. A very good business as iPhone sales continue to grow. Current iPhone users will soon upgrade to the iPhone 5 when it releases. There are rumors the phone will have two cameras meaning more hardware by Omnivision. The stock has a forward P/E of 6.28.
Cirrus Logic, Inc. (NASDAQ:CRUS) develops high-precision analog and mixed-signal integrated circuits (ICs).
Cirrus provides audio and energy controls to iPods and iPads. This April the stock tanked as the company had problems with production. However, I think it was just a short bump in the road for the company. The stock trades at a forward P/E of 10.3.
Broadcom Corporation (BRCM) designs and develops semiconductors for wired and wireless communications.
Broadcom provides the Wi-Fi gear that is placed into iPads and iPhones. The company is a huge beneficiary of Apple and both companies have a strong relationship. The stock trades at a forward P/E of 11.
Linear Technology Corporation, (NASDAQ:LLTC) together with its subsidiaries, designs, manufactures, and markets various analog integrated circuits worldwide.
Linear provides power management solutions for the iPhone and iPad. Although, I am a Windows user, I must give credit to Apple on its strong battery life. This is because Apple uses Linear's products in its electronics. The stock trades at a forward P/E of 11.79.
NXP Semiconductors N.V., (NASDAQ:NXPI) through its subsidiary NXP B.V., provides mixed signal solutions and semiconductor components primarily in Japan, Europe, South Korea, Rest of Asia Pacific, and the Americas.
Did you ever imagine a future where your credit card could be integrated into your phone? You want to buy some coffee at Starbucks, so you scan your phone. Believe it or not, this future is not too far away. NXP has been developing technology that corporations are slowly trying to integrate. NXP is developing the NFC chip, a chip many believe will be in the iPhone 5.
Skyworks Solutions, Inc., (NASDAQ:SWKS) together with its subsidiaries, offers analog and mixed signal semiconductors worldwide.
Skyworks provides silicon that is used in the production of iPhones. The stock has fallen on the fear that the new iPhone 5 will be a smaller percentage of its revenue. However, as sales of smartphones continue to grow, Skyworks is positioned well to benefit. The stock trades at a forward P/E of 9.63.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.