Inside the phone are chips by Avago Technologies (AVGO), Qualcomm (QCOM), and Skyworks Solutions (SWKS).
A full breakdown of the actual chips in the iPhone 4S:
-Qualcomm MDM6610 chipset (an upgrade from the iPhone 4's MDM6600) -Apple 338S0973 PowerManagement IC -Avago ACPM-7181 Power Amplifier -Qualcomm RTR8605 -Skyworks 77464-20
There also appears to be images of two TriQuint Semiconductor, Inc. (TQNT) chips in the iPhone 4S. The iFixit article does not mention this specifically by name, at least not yet.
However, the inclusion of TriQuint has been mentioned by Barron's, adding some credence to the likely inclusion of the chips.
These chip names are all likely to benefit as sales of the iPhone 4S are expected to be extremely hot going into the holiday shopping season, as is ARM Holdings (ARMH). Apple uses ARM technology to make its own chip to power the phone, the A5 chip. The A5 chip also powers the iPad 2.
With the introduction of Siri, the personal assistant, we know that Siri is powered by Nuance Communications (NUAN) technology, but that has not been confirmed by iFixit, just yet.
iFixit is still working on breaking down the iPhone 4S as this article is being written up, and is currently working on the camera. In the past, Apple has used Omnivsion Technologies (OVTI) chips for the cameras in its iPhones, as well as iPads.
As iFixit continues to break down the phone, Benzinga will bring you coverage.
Action Items:
Bullish:
Traders who believe that the iPhone 4S will sell extremely well might want to consider the following trades:
- Consider the chip suppliers, which are fairly strong today. Qualcomm, Skyworks, Avago, TriQuint and potentially Omnivision should all do well.
- ARM also benefits, as virtually all smart phones run on ARM-based chips. Obviously, Apple benefits as well.
Bearish:
Traders who believe that the iPhone 4S will take market share may consider alternate positions:
- This could be negative for Google, as it runs the Android operating system, and Nokia, which has seen market share continuously decline.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
