Skyworks and Qorvo Stocks Are Sells Now. It’s About Apple’s iPhone Sales.

Skyworks is losing share of the business to supply Apple with iPhone components. (Dreamstime)

Key Points

• Mizuho Securities downgraded Skyworks Solutions and Qorvo due to projected iPhone sales decline and a challenging Chinese smartphone market.
• Mizuho estimates iPhone unit sales will decline 7% in 2026, with only 1% growth anticipated in 2027.
• Skyworks and Qorvo rely heavily on Apple, with iPhone components accounting for over 65% and 45% to 50% of their revenues, respectively.

Apple isn’t the only company that would suffer if iPhone sales sink in the coming year.

Analysts at Mizuho Securities downgraded the smartphone chip makers Skyworks Solutions and Qorvo to Underperform from Neutral in a research note. A projected decline in iPhone shipments in 2026 and a challenging Chinese smartphone market are the primary reasons.

The firm slashed its price target for Skyworks to $60 from $70 and for Qorvo to $75 from $87.

In midday trading Monday, both were up. Skyworks gained 1.7%, to $76.63; Qorvo climbed 1.9%, to $93.90.

Although the iPhone 17 release appears to have been a hit, the next two years will be tougher, Mizuho believes. The firm projects iPhone unit sales will decline 7% in 2026, as customers take longer to upgrade their current devices in response to rising prices, particularly for the upcoming foldable iPhones. Mizuho anticipates sluggish 1% growth in 2027.

That would be a troubling scenario for Skyworks and Qorvo, which both rely heavily on their supplies to Apple . Components for iPhones account for more than 65% of Skyworks’ total revenue and around 45% to 50% of Qorvo’s revenue, Mizuho estimated.

Skyworks and Qorvo didn’t immediately respond to requests for comment.

To make matters worse for Skyworks, the company is losing share of iPhone content to competitors, including Qorvo. Earlier this year, Skyworks stock plummeted after the company told investors its share of the business of supplying Apple components would decline by 20% to 25%.

The companies also face headwinds in China, where the smartphone market is shifting. Reduced consumption subsidies in China mean more customers will turn to lower-end smartphones over premium models, Mizuho argued. Domestic Chinese chip makers provide more competition in that low-tier segment of the market.

Qorvo could take a $175 million annual hit from market-share losses in China in 2026 and 2027, the firm predicted. That would offset any gains it makes from winning market share in sales of parts for iPhones.

Write to Nate Wolf at nate.wolf@barrons.com