Why Broadcom Will Likely Be A Big Winner From Apple's iPhone Launch

Apple Inc. AAPL's new product launch event on Tuesday could prove to be an encouraging development for Broadcom Ltd AVGO and Intel Corporation INTC, according to JPMorgan's Harlan Sur.

Broadcom could emerge a winner from Apple's event, as more of its technologies will be included in the iPhone, Sur said in a research report. For example, an OLED iPhone model could use Broadcom's touch control technology while Broadcom's wireless charging sockets and increased connectivity content will result in a higher dollar content per unit.

While Broadcom's higher exposure to the iPhone will be considered as an "outsized benefit," the same can't necessarily be said for Intel, the analyst continued. In Intel's case, increased exposure within Apple's products is unlikely to be big enough to "move the needle" from a revenue perspective.

Intel likely benefited from increased modem share as opposed to the prior iPhone model, the iPhone 7, where Intel had a minority share of modem count. This time around Intel's modem share will likely be "roughly split evenly" with QUALCOMM, Inc. QCOM. Intel's technology could also be featured in a new Apple Watch with LTE capability.

Finally, the analyst reiterates Broadcom as the firm's top semiconductor pick and also maintains an Overweight rating on Intel's stock.

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