Skyworks Stock Drops 25% Following Apple’s Shift to Dual-Sourcing Strategy

Apple’s decision to source iPhone chips from Broadcom alongside Skyworks raises concerns about the latter’s revenue and market position.

Skyworks Solutions' stock fell 25% after revealing Apple will dual-source radio frequency chips for the iPhone 17, reducing Skyworks' share by 20-25%.
Apple accounted for 72% of Skyworks' revenue last quarter, making the shift a significant blow to the chipmaker's financial outlook.
Analysts estimate the move could result in a $600 million revenue loss for Skyworks in 2025, with broader concerns about Apple’s potential in-house modem development.
Skyworks also announced Philip Brace as its new CEO, replacing Liam Griffin, amid investor uncertainty about the company's direction.
The semiconductor industry faces broader challenges, including excess inventory and slowing demand in sectors like automotive and industrial electronics.