Read Why Piper Sandler Lacks Conviction On Apple's In-House Chip Plans

  • Piper Sandler analyst Harsh Kumar is viewing with a "skeptical eye" the report of  Apple Inc AAPL bringing wireless chip development in-house.
  • Kumar notes that radiofrequency "requires a ton of experience from a design and handling standpoint, as characteristics can vary significantly."
  • Kumar interprets the job postings on the Apple website to be more related to transceiver design and system architecture.
  • The analyst says dealing with complex RF technologies would require a "great level of understanding and many more job functions than currently posted."
  • Kumar does not believe it is fundamentally feasible to enter the market with few resources for at least a decade.
  • Kumar does not consider Apple's move a threat to RF players like Skyworks Solutions Inc SWKS and Qorvo Inc QRVO.
  • Kumar contends it could be Apple's play to "peel off the Qualcomm Inc QCOM business down the line." 
  • It could also mark a situation under which Broadcom Inc AVGO and Apple "have decided to refocus their relationship in the future only on certain products."
  • Price Action: AAPL shares traded lower by 1.29% at $170.03 in the premarket session on the last check Friday.
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