Credit Suisse picks the Apple suppliers set to pop as the iPhone evolves

Published Fri, Jul 23 20218:10 AM EDT

With Apple expected to unveil its new iPhone later this year, analysts at Credit Suisse have identified the stocks they think will get a boost from the smartphone's evolution. Credit Suisse expects the total addressable market for Apple hardware to reach a whopping $300 billion by 2023, led by the iPhone. In a note dated July 14, the bank firm forecast iPhone sales of 234 million units this year, 237 million units in 2022 and 249 million units in 2023. In the near term, Apple's new iPhones are likely to come with "evolutionary" upgrades over 2020's iPhone 12, like an improved camera, display and processor, Credit Suisse said. Over the next one to two years, analysts at the bank expect Apple to make more "incremental" changes, like the removal of the notch for the camera, a fingerprint reader under the screen and foldable displays. "We have seen good momentum in the iPhone 12 cycle with a richer mix along with unit growth off a lower base," the bank said in a research note Wednesday. Apple is expected to release its successor to the iPhone 12 sometime in the fall. Credit Suisse said it remained "bullish" on next-generation 5G networks as a catalyst for iPhone upgrades over time. Here are some of the stocks Credit Suisse sees as getting the most upside as the iPhone evolves: South Korea's Samsung , which makes phone displays. Inari Amertron Berhad , a Malaysian firm which makes radio frequency systems for smartphones. Lens Tech , a China-based company which supplies casing for iPhones. Micron , an American producer of computer memory and data storage. BOE Technology Group , a Chinese supplier of phone displays. Taiwan's Largan , which makes camera lenses. LG Innotek, a South Korean electronic components manufacturer. Chroma, a Taiwanese firm that supplies components for Apple's Face ID. STMicroelectronics , a Switzerland-based chipmaker. Chipbond, a Taiwanese supplier for iPhone panels. Japan's Sony , which supplies camera sensors. U.S. chipmaker Broadcom . Credit Suisse gave a number of reasons for its stock picks. With Samsung, the bank said the South Korean multinational could benefit from Apple's development of foldable smartphones. On Micron, Credit Suisse said the firm would likely get a boost from larger memory in the new iPhones. STMicroelectronics is the only European semiconductor company with "material Apple and iPhone exposure," Credit Suisse said, adding Apple has grown from a 10% customer of the firm in 2016, to 24% in 2020. As for Sony, Credit Suisse said the company "will continue to benefit from camera spec upgrade in iPhone." Meanwhile, Broadcom will grow its radio frequency components business as iPhone users increasingly shift over to 5G devices, Credit Suisse said.

A customer holds new smartphones at a re:Store shop in Petrovka Street, where iPhone 12 and iPhone 12 Pro have gone on sale.

Alexander Shcherbak | TASS | Getty Images

With Apple expected to unveil its new iPhone later this year, analysts at Credit Suisse have identified the stocks they think will get a boost from the smartphone's evolution.