Major Supplier of Multilayer Ceramic Capacitors is Bullish on 5G Phones from Apple and Chinese Vendors in 2020
One of Apple's suppliers known as Taiyo Yuden Ltd grew 99% in 2019, 32% in the last 3 months and just today gained 4.6%. One of the products that the Japanese company makes is multilayer ceramic capacitors that are used in smartphones and more specifically, for Apple's next-gen 5G iPhone in 2020.
Chief Executive Officer Shoichi Tosaka said in an interview with Bloomberg on Thursday that Apple is expected to introduce "its first 5G-enabled models in September" and it is "widely expected, that the orders for components are likely to come in June. The company has sufficient output capacity to meet the demand."
Wedbush Securities Inc. predicted this month that the first batch of 5G-enabled iPhones, whenever they come, will "open up the floodgates" on device upgrades.
Analyst Dan Ives wrote in a recent note to clients that "About 350 million iPhones among Apple's 900 million installed user base are now in the window of an upgrade opportunity."
At the moment, Huawei Technologies Co. and ZTE Corp. have led the orders for capacitors used in base stations, Tosaka said. Huawei may sell 100 million 5G-enabled smartphones in China alone next year. Read the Bloomberg report titled in-part "Apple Supplier Bullish on 2020…" for more.
Below is a company video on their multilayer ceramic capacitors.