Something strange has happened this year between Apple and companies that supply parts to its many products: Their stock performances have diverged, after a long period of moving up and down together. Even weirder is that this divergence is not based on which companies are more dependent on the tech giant.
Shares of major suppliers that generate significant portions of their revenue from Apple have held relatively steady despite Apple's stock getting crushed in the last few weeks. In fact, some of them even have outperformed Apple significantly over the longer run.
Year-to-date shares of Cirrus Logic, for example, are up roughly 13 percent as of the market's close Tuesday. The company develops high-precision analog and mixed-signal integrated circuits for a broad range of innovative customers including Apple.
Likewise, shares of Multi-Fineline Electronix, a company that provides printed circuit and assembly solution, are also up close to 7 percent. Compare that with Apple's stock, which is down over 11 percent in the period.
Both Cirrus Logic and Multi-Fineline Electronix generate more than 70 percent of their revenue from Apple. The divergence in stock performance is counterintuitive given Apple's lackluster Q1 2016 growth and lowered Q2 revenue guidance.