Broadcom, Qorvo, Skyworks lead chips lower as Apple iPhone concerns crop up

Several semiconductor companies in the Apple (NASDAQ:AAPL) supply chain fell sharply on Monday amid concerns that the iPhone 16 series is off to a slower-than-expected start.

Broadcom (NASDAQ:AVGO), Skyworks Solutions (NASDAQ:SWKS), Qorvo (NASDAQ:QRVO) and Cirrus Logic (CRUS) saw declines of 5% or more in early Monday trading after TF International Securities analyst Ming-Chi Kuo said the first weekend pre-order shipments for the iPhone 16 line were roughly 37M units, down 12.9% year-over-year, amid “lower-than-expected” demand for the iPhone 16 Pro.

Broadcom supplies 5G radio frequency chips to the iPhone maker, while Qorvo and Skyworks make antenna solutions and analog and mixed-signal chips, respectively.

Qualcomm (QCOM), which provides modem chips for the Cupertino, Calif.-based Apple, was down 1.4% in early trading.

Micron (MU) shares fell nearly 4% after Morgan Stanley said that the supply of the memory market has caught up with demand. Apple executive Johny Srouji confirmed that the latest iPhone 16 models have 8GB of RAM, up from 6GB, due in part to the need to support Apple Intelligence.

Other Apple suppliers, including Texas Instruments (TXN), saw smaller declines in early trading.

Intel (INTC) and AMD (AMD), each of which do not supply Apple with chips, bucked the selling and rose in early trading, led by a 3.5% gain for Intel after it was reported that the company had qualified for a $3.5B grant to manufacture chips for the Pentagon.