Skyworks Solutions (SWKS, Financial) is recognized for its commitment to returning cash to shareholders through share buybacks and dividends. The company's stock has recently declined, but management has been actively repurchasing shares.
- In early February, Skyworks' stock dropped after its Q1 report. Although results were decent, the announcement of losing business with its largest customer, Apple (AAPL, Financial), was concerning. The competitive landscape has become more challenging for Skyworks.
- For the upcoming iPhone launch, Skyworks secured several RF module sockets, but its content share is expected to decrease by 20-25%. This decline will impact revenue starting Q4 and continue through FY26. Analysts suggest Broadcom (AVGO, Financial) is gaining this share with Apple.
- Skyworks is developing new products for future iPhones and pursuing growth with other mobile customers selectively. The focus remains on high-performance RF segments, with diversification efforts expected to offset some revenue losses from Apple in FY26 and support growth in FY27.
- Philip Brace was appointed as the new CEO in February 2025. With a strong background in the semiconductor, server, IoT, and storage industries, Brace brings extensive experience to his new role. Previously, he served as executive chairman of Inseego and CEO of Sierra Wireless.
The reduction in iPhone content is a significant setback for Skyworks. While regaining this share could be challenging, the company aims to compensate with other mobile customers and sectors like automotive, edge IoT, and Wi-Fi 7. The new CEO, Philip Brace, may help steer the company toward recovery. Skyworks has also capitalized on its stock pullback, returning a record $600 million to shareholders through buybacks and dividends in Q2.
