ANALYSIS: APPLE (AAPL) and their iPHONE SUPPLIERS

This report provides a useful overview of some of Apple's biggest suppliers for iPhone parts ahead of the well anticipated
launch of the expected iPhone at the media event scheduled for 1800BST/1200CDT September 9th 2014. This report was
compiled by analysing a number reports which confirmed members of the Apple supply chain and speculated suppliers but also by
collating company names which have seen movement in shares during previous Apple media events and in reaction to speculation
leading up to Apples media event 2014. The graphic below is a snap-shot of suppliers to the iPhone, and a table is available of page
2 which has a more exhaustive list of US suppliers**. Expectations for the next generation iPhone are also available on the next page


























Casing Design &
manufacturing
ZAGG Zagg
JBL Jabil Circuit (plastic
cases for 5C & metal exteriors
for 5S)
Sapphire Glass GTAT - GT Advanced

Glass/Display
GLW Corning
Display
LPL LG Display
SHCAY - Sharp

Transistor-Liquid Crystal
Display AUO AU Optronics

Camera/Camera Sensor
SNE - Sony
FLEX Flextronics (iPhone 5 camera modules)

INVN
InvenSense
MAJOR CHIP MAKERS:

Processor chips
ARMH Arm Holdings

Mobile DRAM
MU - Micron

Wi-Fi module & touchscreen controller
BRCM Broadcom - One of APPLs major
suppliers

Bluetooth Support
MRVL - Marvell

Audio chip supplier
CRUS Cirrus Logic (revenue from AAPL 80-90%)

4G LTE chip
QCOM Qualcomm One of APPLs major
suppliers

Flash memory maker/32BG multi-chip
memory package w/controller (iPhone 5)
SNDK SanDisk (revenue from AAPL ~20.0%)
Battery charger chips (in iPod)
LLTC Linear Technology
Headphone Cable

USB Cable
MMM 3M
Infrastructure support for content delivery
AKAM Akamai (revenue from AAPL ~1.0%)

Microphone (MEMS)
supplier
DOV Dover
ADI - Analog Devices

Connectors
APH Amphenol (10% of AAPL
connector business)
MOLX Molex (electronic
connectors for iPhone 5)


EXPECTATIONS FOR iPHONE 6
BIGGER SCREEN
Expectations are for two new iPhone models which will come with larger screens. One is expected to display a 4.7 inch and one a
5.5 inch display, which compares with a 4 inch display in the iPhone 5 series.
SAPPHIRE DISPLAY
One of the most notable user problems with the current iPhone models is that many are unimpressed by the nature of the iPhone
screen to scratch and crack upon impact to counter this problem Apple have been experimenting with hard-wearing sapphire
glass (already used in touch ID and rear camera lenses). Sapphire glass is expected to be used for the display in one of the iPhone
6 models, but not both due to the high cost of the material. GT Advanced (GTAT) are one the leading producers of this material,
and so if it is confirmed that GTAT will be used for a phone display shares will likely see an aggressive bid, although this would
have a negative impact on manufacturers of gorilla glass, Corning (GLW).
BATTERY LIFE
The new model is expected to feature Apple's next generation A8 processor, which should give the smartphone a large
performance boost. The aforementioned A8 processor is also expected to improve power efficiency, and therefore increase battery
life.
iWALLET
Apple is expected to use Near Field Communication (NFC) in their new iPhone 6, the technology used for contactless payments.
Apple is said to have been in discussion with Visa (V), MasterCard (MA) and American Express (AXP) to develop an 'iWallet'
payment system, which would allow users to pay for things using their phone. Reports have suggested the source of the NFC
hardware will be NXP Semiconductor (NXPI).
BETTER CAMERA
Apple's new device is also expected to have a vastly improved camera, with a 13-megapixel sensor provided by Sony (SNE).

Company Ticker Function
Rev. from
Apple (%)* Company Ticker Function
Rev. from
Apple (%)*
3M MMM USB Cable 3.0 Advanced Micro Devices AMD 0.7
Akami AKAM Infrastructure support for content delivery 5.3 Analog Devices ADI MEMS Microphone Supplier 4.3
Amphenol APH Connectors 5.3 Avago Technologies AVGO Power amplifier & supplies through purchase of LSI Corp (LSI) 2.6
Arm Holdings ARMH A7 processor (iPhone 5S) - Cypress Semiconductor CY Makes processors and chips (many of iPod nano components) 2.6
AU Optronics AUO Transistor-Liquid Crystal - Fairchild Semiconductor FCS 5.2
Broadcom BRCM Wi-fi module & touchscreen controller 9.4 Infineon IFNNY Chip maker 0.6
Cirrus Logic CRUS Supplied audio chips - class D amplifier 73.0 Intersil ISIL Semiconductors for iPod nano 5.2
Corning GLW Glass 1.7 Linear Technology LLTC iPhone's battery charger chip, USB controller, chips in iPod 5.2
Dover DOV Microphone supplier/MEMS 0.9 MagnaChip MX Closely correlated with Cirrus Logic 5.3
Electro Scientific Industries ESIO Supplier of "photonic and laser systems." It makes up 1.93% of Apple's costs 15.0 Marvell Technology MRVL Bluetooth support 5.2
Flextronics FLEX Power-related components inc. iPhone 5 camera modules - NXP Semiconductors NXPI Speculated to supply NFC chips to iPhone 6. Currently supply power management 9.4
GT Advanced GTAT Sapphire Display - OmniVision OVTI Back-illuminated CMOS sensor in iPhone 4 camera & iPhone 5S 5.2
Infineon IFNNY Chip maker 0.6 Pixelworks PXLW Semiconductors for digital-video display 10
InvenSense INVN Fingerprint Technology - speculated in 1Phone 6 - RF Micro RFMD Antenna switch/integrated circuits 0.7
Jabil Circuit JBL Electronic Manufacturing (responsible for producing iPhone 5C) 19.0 Semtech SMTC Power management chips 5.2
LG Display LPL Display 30.0 Skyworks SWKS Quad band module, power amp. module 5.2
Linear Technology LLTC iPhone's battery charger chip, USB controller, chips in iPod 5.2 STMicroelectronics STM Accelerometer -
Marvell Technology MRVL Bluetooth support 5.2 Texas Instruments TXN Circuit board 1.2
Micron MU
Mobile DRAM - Through purchase of Elpida memory, which is used in the
iPad 4, iPhone 5, and second-generation Nexus 7 and others 11.0 Teradyne TER Semiconductor test equipment
12.0
Multi-Fineline Electronix MFLX Printed circuit boards 0.7 TriQuint TQNT Power amplifier 5.2
Molex MOLX Electronic connectors for iPhone 5 0.5 * as % of total rev.
Qualcomm QCOM Power management IC, LTE modem 5.2
SanDisk SNDK
32GB multi-chip memory package w/controller; SSDs through acquiring Fusion-
io (FIO) 20.0 Speculated:
Sharp SHCAY Display 11.8 Synaptics SYNA
Sony SNE Camer/camera sensor 3.0
TTM Technologies TTMI Circuit boards 20.0
Zagg ZAGG Design and manufacturing of casings -
APPLE SUPPLIERS OTHER SEMICONDUCTOR & CHIP SUPPLIERS
Manufactures touchscreen chips, previous AAPL supplier, recently
bought the remaining outstanding shares in Renesas SP Drivers
(sole supplier of display driver chips for the iPhone)
**