There have been countless "unconfirmed" reports that Apple has scheduled a major announcement for September 12, and all of the Apple fans and experts expect a new iPhone to be unveiled. However, if you're looking to buy Apple (AAPL) now, you've already missed a five percent move. There is still time to look into other ways to play the iPhone launch, and their biggest suppliers are a perfect way to dive in.
NXP Semiconductor (NXPI) is my favorite way to play the launch. NXP has been a growing supplier for Apple over the last couple of years. With Qualcomm's (QCOM) chip shortage still being sorted out, NXP has seen an uptick in desire for their product. Also, there has been heavy action on the $30 October calls. Even the experts see this stock taking off with a 20% priced in on the options only two and a half months out.
To make the case even stronger for NXP, they are in Android phones, just entered into the tablet market, and there are some rumors that they could possibly work their way into the Apple TV. Combine their extremely impressive client list with their cutting edge technology, and you have a short term play that could easily be held as a long term investment. On a conviction buy scale, I would give NXP Semiconductor a strong buy.
Another play on the iPhone launch is Broadcom (BRCM). While they are a much more developed company than NXP, they were the main substitute during the Qualcomm shortage. With the increased demand, a dreamy .79 PEG ratio, and a forward P/E of 11.24, it's easy to see more room for this stock to move higher. A beat on their earnings on October 25th could help this stock push against, and possibly through, it's 52-week high.
Qualcomm, despite their recent supply troubles, is still the biggest kid at the table. With a new order from Microsoft (MSFT), being a main supplier for both Apple and Samsung, they are still a good way to play the iPhone launch. With a lower current P/E than rival Broadcom, Qualcomm could be a quick play. Long term price could be in trouble though with a PEG ratio north of 1, P/S closer to 6 than 5, and a forward P/E of 15.34, this company may need some innovation over the coming months and years.
While there are plenty of ways to play the iPhone launch, these are probably your best options for it. Apple has proven that it can make or break businesses, and NXPI is your strongest option for the now and in the future. Of course, always seek financial advice from a licensed professional. There is risk associated with all investments, and you should never invest more than you can afford to.