Skyworks Stock Plummets 25% Amid Apple Supplier Shift

Skyworks Solutions' stock plummeted over 23% after the company announced it would lose a significant portion of its business with Apple due to the latter's decision to dual-source components from competitors, believed to be Broadcom. Skyworks CFO Kris Sennesael indicated that Apple's shift would result in a 20% to 25% reduction in revenue from iPhone components, with estimates suggesting a potential $600 million impact on Skyworks' revenue for 2025. Analysts have responded with downgrades, predicting lower revenue and profitability through fiscal year 2026, with Stifel cutting its rating to Hold and lowering price targets significantly. Despite these challenges, Skyworks is focusing on future opportunities, including developing solutions for the iPhone 18 and exploring markets beyond mobile devices. The company has faced similar setbacks previously, losing business to Qualcomm, and analysts are cautious about the chances of regaining lost Apple orders until Apple transitions to in-house modem production. Overall, Skyworks' dependency on Apple remains a critical issue amid a shifting market landscape.