Apple (NASDAQ:AAPL) is expected to unveil its latest iPad iteration on March 7 at the Yerba Buena Center for the Arts Theater. All eyes will be focused on whether the device integrates Siri, which would be good news for Nuance (NASDAQ:NUAN). But, we'll have to wait for industry teardowns to see which suppliers, such as Broadcom (BRCM) win coveted slots.
The iPad 2 was announced on March 2nd last year and iFixit posted its teardown within two weeks, suggesting investor's won't have to wait too long to see which suppliers benefit. In the iPad 2, Broadcom held onto key slots from the original iPad. Once we peak inside the iPad 3, here's a list of Broadcom products found in the iPad 2 for comparison.
· Broadcom microcontroller for the touchscreen
· Broadcom capacitive touchscreen controller
· Broadcom combination WiFi, Bluetooth, FM chip
Outside of Broadcom, the iPad 2 is powered by Apple's dual core A5, uses a Texas Instruments (NASDAQ:TXN) touchscreen line driver, a gyroscope and accelerometer from ST Micro (NYSE:STM) and an LG Display using Corning's (NYSE:GLW) Gorilla glass.
A focus will likely be on squeezing vendor margins to keep the bill of materials down on the machine. Of course, if a smaller screen size version is announced we'll have to keep that in mind in comparing costs too. But, according to IHS last year, the iPad 2 cost roughly $335 to build.
One bit of speculation to keep an eye on, Qualcomm (NASDAQ:QCOM) could win the baseband chip slot, given it won the similar slot from Infineon in the iPhone 4S.
Overall all, if Broadcom holds onto its slots, especially if a second smaller machine is also announced, I'd view that as positive. If Qualcomm wins the baseband chip, that will offer upside for Q1 2012 results. And, if Siri makes its debut on the iPad 3, Nuance will see a big benefit.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in QCOM over the next 72 hours.