Moreover, All Things D reports that iPhone 5S production will begin this month, which means that the possibility of a strong outlook from TriQuint is indeed there as Apple Inc. (NASDAQ:AAPL) ramps up production and orders components. In addition, the same report also suggests that Apple Inc. (NASDAQ:AAPL) has already begun production of a low-cost iPhone, which should again help TriQuint gain if it has managed to land a spot in the device.
As All Things D points out, Apple Inc. (NASDAQ:AAPL)’s budget devices, such as the iPad mini and the iPod nano have done well despite their pricing when compared to competing devices, and a mid-tier iPhone might also sell in good numbers, and might be one of the reasons TriQuint Semiconductor (NASDAQ:TQNT) is confident of a return to profitability this year.
In addition, TriQuint also counts Samsung and Research In Motion Ltd (NASDAQ:BBRY) as clients as well. However, Samsung’s flagship has already been on the market for some time, and so, it might not play a big role in providing a boost to TriQuint’s outlook.
But Samsung is now trying to flood the market with more devices as it looks to capture more market, especially in the U.S. The company already has a downsized version of its flagship in the form of the S4 mini, and might introduce multiple models of its important devices in the future as well as reports suggest. TriQuint Semiconductor (NASDAQ:TQNT) had provided wireless chips for the S4, and if Samsung indeed goes for multiple models at various price points, TriQuint should see an increase in its addressable market.
TriQuint Semiconductor (NASDAQ:TQNT) is also counting on Chinese smartphone growth and the company said that it has landed a few design wins at Chinese manufacturers. The market in China is booming and it won’t be surprising if this is another reason behind a positive outlook.
The company is looking to benefit from data growth around the world as its chips enable connectivity and also enjoys diversification through its exposure to the networking infrastructure (where it now counts the likes of Ericsson, Huawei, and ZTE as customers) and defense markets, apart from mobile.
The bottom line
Investors have enjoyed solid returns from TriQuint in 2013, but they will be waiting with bated breath to see if the company is really in a position to fulfill its promise. What if TriQuint falters once again? Will it be a good buy on a pullback? Or what if it indeed delivers a solid outlook? Will it be a good buy even then considering the solid appreciation it has enjoyed this year?
Harsh Chauhan has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL) and TriQuint Semiconductor (NASDAQ:TQNT).
The article Make-or-Break Day Coming for This Apple Supplier originally appeared on Fool.com.
Harsh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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