Tech Companies Contributing to Apple's Components and Tech The success of online stock trading and direct access trading platforms is the result of technology. Technology stocks are always interesting, because there is always some innovation going on. And many big brands such as Apple ($AAPL) rely on much smaller tech companies for their components, which are reported in this Investopedia article. It would be interesting to check out these stocks.

Apple's Tech Reputation Hinges on Suppliers

Apple is synonymous with consumer tech. Its iPhones have been the most venerable mobile phones while its Mac operating system and hardware have an equal reputation in the desktop computing market. Apple's USP is its penchant for innovation. It is because of that innovation and overall quality of their iPhones, iPods, iPads and also the Apple Watch that consumers have been willing to pay the extra premium to get themselves an Apple product. All that has resulted in Apple becoming one of the most valuable companies.

What's interesting for investors and stock traders is that Apple's popularity hasn't been benefiting the Cupertino, California-based company alone. Every Apple product contains components made by external suppliers. And every product is also assembled by external service vendors. So all these companies that help make an Apple device stand to gain with Apple’s popularity. So let's delve into some of these third party providers.

Modem Technology from Qualcomm

Qualcomm ($QCOM) is one of Apple's major suppliers. It's a very familiar name, known for its leading expertise in developing semiconductor products as well as products for the mobile and telecom industry. Qualcomm supplies Apple with various electronic parts such as the Baseband Processer, Envelope Power Tracker, GSM/CDMA Receiver as well as Transceiver, and Power Management module. These instruments are important for the mobile signaling and power management systems of the devices. All the required modem technology for Apple devices is provided by Qualcomm.

Capacitive Touchscreen Controllers from Analog Devices

Analog Devices ($ADI) supplies capacitive touchscreen controllers in the Apple Watch and iPhones from its facilities in the US, the Philippines and Ireland. The interesting thing about this stock is that it soared 9.8% in just a day in March 2015 right after media reported that Apple was considering ADI to supply its 3-D touch feature. These levels were highest for the company in a decade.

Memory Modules by Micron Technology

Micron Technology ($MU) has subsidiary companies based in US and parts of Asia including Taiwan, China, Japan and Singapore. They supply Apple devices with memory modules such as LPDDR3, LPDDR2 and DRAM. Apple's electronic devices and smartphones use these modules for performing multitasking by running various applications. LPDDR3 is used by the iPhone 6 while the LPDDR4 is in the testing phase. It is expected to be faster by up to 60% and likewise lower on power consumption too.

These are just some of the many suppliers Apple relies on, the others including companies having their own reputation, including Texas Instruments ($TXN) and Samsung. That's right, Samsung competes against Apple in the smartphone market, but its subsidiaries supply components to Apple which helps Samsung reduce the manufacturing costs for its own smartphones as a result of bulk production.

As long as Apple relies on these suppliers for its devices, there is every possibility of them doing well. It is a mutually beneficial relationship. With advanced direct access trading platforms such as those offered by TradeZero, you can trade with these stocks depending on your portfolio choice. Contact us at 1 954-944-3885 or email support@tradezero.co.

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