These 4 Stocks Are Tied to the Smartphone in Your Pocket
Apple (AAPL) reported 17% iPhone revenue growth, while Qualcomm (QCOM) saw a 26% drop in handset chip revenue. Corning (GLW) and Arm (ARM) cited a softer smartphone market. All four companies noted rising memory chip costs. Apple's iPhone revenue was $57.6B in Q4, with full-year sales at $254B, 53% of total revenue. Qualcomm's auto chip revenue surged 89%. Corning's glass segment sales slipped 3%, while optical communications grew 44%. Arm's royalty revenue declined to $670M in Q3.
How this was made
The 30-second read
Why it matters
Apple’s growth supports a bullish view, whereas Qualcomm’s handset slump and Arm’s royalty dip introduce downside risks; Corning’s mixed results hinge on non‑phone segments.
Market read
Earnings reveal a split in the smartphone supply chain, offering distinct trade ideas across the four stocks.
What to watch
Potential upside from Apple’s upcoming iPhone price hikes and Corning’s AI‑related glass demand could offset current softness.
Background
The article reviews the latest quarterly earnings of four companies tied to the smartphone ecosystem, noting divergent performance trends.
Ticker impact
Apple reported iPhone revenue up 17% YoY to $57.6 bn in Q4, but margins slipped due to higher memory costs.
likely modest upside as investors weigh strong sales against margin compression
Revenue beat is fresh and sizable; margin dip is a near‑term headwind but not a fundamental flaw.
Qualcomm’s handset chip revenue fell 26% YoY to $5.1 bn in Q4, with a shift to Apple’s own modems reducing future sales.
likely pressure as the market prices in a shrinking handset business
First report of a sharp revenue decline and a strategic risk from Apple’s modem plan.
Corning said its cover‑glass segment slipped 3% YoY to $1.5 bn, while optical communications grew 44% and AI‑related sales more than doubled.
limited move, with upside potential if optical/AI segments sustain growth
Quarterly numbers are fresh but the impact is balanced across business lines.
Arm’s royalty revenue fell to $670 m in the September quarter, down from $715 m, as memory costs hurt smartphone demand.
likely modest downside unless data‑center momentum accelerates
First disclosure of a revenue dip; the long‑term growth narrative tempers the impact.
Market effects
Smartphone supply chain shows divergent trends: phone makers benefit, component makers face pressure from memory costs.
U.S. tech stocks may see varied reactions; Apple may lift broader indices while Qualcomm could weigh them down.
Highlights macro pressure from memory‑chip pricing affecting multiple global tech manufacturers.
Counterpoint
Investors could short Qualcomm despite its low valuation, betting on continued handset decline, while buying Apple on its sales momentum.
Key entities
- companyApple
U.S. consumer electronics giant; iPhone revenue up 17% YoY.
- companyQualcomm
Chipmaker and licensor; handset chip revenue down 26% YoY.
- companyCorning
Glass manufacturer; cover‑glass sales down, optical communications up.
- companyArm Holdings
Chip‑design licensor; royalty revenue fell as memory costs rise.
