3 Stocks Poised to Gain From the iPhone 16’s Launch

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Apple Inc,NVIDIA Corporation,Vmware Inc

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) revealed the next iteration of its bread-and-butter revenue generator: the iPhone 16. Of Apple’s total revenue output in fiscal Q3 2024, iPhone sales made up 46%. To stay in the smartphone game, the company faces a tough challenge against the competitively priced flagships of Huawei and Xiaomi , powered by the latest A18 chip.

Although it remains to be seen if Apple Intelligence will capture users’ attention enough to boost sales beyond expectations, it is fair to say that Apple is setting new standards for competitors. In turn, some companies could benefit from the new tech introduced with the iPhone 16 series.. In May 2023, Apple made a deal with Broadcom for its film bulk acoustic resonator chips that link Apple devices.

However, investors took note of Broadcom’s net income loss of $1.87 billion vs $3.3 billion net gain in the year-ago quarter. Although $1.35 billion can be attributed to a tax-related event, it reminded investors that Broadcom is still a cyclical company currently in the downward zone. The X75, first announced in February 2023, is the power behind Apple’s 5G connectivity, having 25% less circuit board space and yielding 20% less power draw.

Nonetheless, the company aims to leverage that relationship as a ramp to diversify its Audio and High-Performance Mixed-Signal division. In May’s Q4 FY23 shareholder letter, Cirrus reported penetration into Android haptics and the broader long-term goal of supplying the laptop market with boosted amplifiers.

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