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Everyone Loves iPhone 5, Further Screwing Up an Unbalanced Smartphone Industry


Apple's new iPhone 5 is a megahit.

And I want you to remember something -- Apple had lousy iPhone sales during the second quarter because consumers started to delay their purchases in anticipation of iPhone 5.

So Apple's smartphone market share is actually set to skyrocket through the back half of the year!

That 49.5% number could easily hit the 55-60% mark if not higher by year-end, which creates a whole lotta problems for every component supplier that isn't hooked into Samsung and/or Apple.

In fact, this morning, I caught this little excerpt from a Needham research note on chipmaker Skyworks Solutions (NASDAQ:SWKS): "Unfortunately, weak demand from certain OEM customers appears to be offsetting rev growth at AAPL driven by increased dollar content in the iPhone 5."

Of course, as part of our duty to investors, we've been screaming and hollering about this undercovered issue all year long. (See Samsung and Apple Now Account for 86% of Smartphone Industry Growth.)

We also can't ignore what's going on in the tablet market. Apple is actually taking market share from the Google (NASDAQ:GOOG) Android tablets that were supposed to shake things up! (For more information on this important topic, see these two articles: IDC's 1% Tablet Forecast Increase Masks a Huge Decrease in Expectations for Google Android and Why the Google Android Tablet Market Is Far Weaker Than It Seems.)
Position in AAPL, SNDK
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