Apple-nomics Trickles Down to Semiconductors

It’s almost here. On Wednesday, Apple (NASDAQ:AAPL) is expected to unveil the highly anticipated iPhone 5. The tech giant sent invitations out last week for a special event in San Francisco that hinted at the new smartphone. While many Apple consumers and shareholders are anticipating the launch, the semiconductor industry is also looking forward to the positive boost the iEconomy provides.

The popularity of iGadgets has provided a trickle-down effect for many industries. RBC Capital analyst Doug Freedman recently studied Apple’s influence on semiconductor companies. He estimates that Apple contributed to around 10 percent of worldwide semiconductor unit demand in 2012. In a research note to clients on Monday, Freedman explains, “New product launches out of Apple are becoming increasingly important to monitor, as we estimate the company consumes about 10 percent of worldwide semiconductor content in 2012, which is expected to grow in 2013.”

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The list below details Freedman’s best estimate of how much each company will contribute to the iPhone 5, according to information provided by RBC Capital, Factset and Forbes.

Applications Processor: Samsung $13
756kB Mobile DRAM: Elpida/Samsung $7.50
22GB NAND Flash: SanDisk (NASDAQ:SNDK)/Toshiba $9.50
Connectivity: Broadcom (NASDAQ:BRCM) $4.25
Power Management: Dialog Semi $2.50
Misc. Power Management: Fairchild (NYSE:FCS), TXN, etc. $3.50
Touch Screen MCU: Broadcom $1.25
Touch Screen Driver: Texas Instruments (NYSE:TXN) $1.20
Multi-touch Controller: Broadcom $1
Audio Codec and DSP: Cirrus Logic (NASDAQ:CRUS) $1.80
Image Sensors: Sony (NYSE:SNE)/Omnivision (NASDAQ:OVTI) $5.50
MBMM RF Chipset: Qualcomm $18
Antenna Switches and DTC?: Peregrine/Murata $1.35
MEMS Microphones: Analog Devices $1.60
Audio processor: Cirrus Logic $1
Power Amplifiers: Triquent/AVGO/Skyworks (NASDAQ:SWKS) $4
Misc. Discretes: Other $4

According to the estimates, Freedman predicts that there will be about $81 worth of chips in every new iPhone unit. RBC Capital expects Apple will sell almost 172 million devices next year, which totals $13.89 billion for the semiconductor industry, or 4.4 percent of the expected $314.5 billion worldwide chip sales.

While Apple is the world’s top purchaser of semiconductor products, the new iPhone may have a significant effect on the overall economy as well. JP Morgan’s (NYSE:JPM) chief U.S. economist Michael Feroli believes the smartphone could increase fourth quarter GDP growth by $3.2 billion, or $12.8 billion at an annual rate.

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