Apple suppliers fall after Qualcomm settlement

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Shares of several Apple Inc. suppliers are down after the company announced that it was settling its long-running patent litigation with Qualcomm Inc. . Macquarie analyst Srini Pajjuri downgraded shares of Skyworks Inc. to neutral from outperform on Tuesday, writing that while he doesn’t see too much risk from Qualcomm when it comes to low-band power amplifier duplexers (PADs), Qualcomm is competitive with its diversity receive modules (DRx modules), which could lead to price pressure for Skyworks. Skyworks gets close to half of its revenue from Apple. Pajjuri also wrote that he sees some risk to his calendar 2020 estimates for Qorvo Inc. as both Qorvo and Broadcom Inc. benefitted from Qualcomm share losses at Apple. Broadcom shares are up 0.6% in midday trading Wednesday, while Skyworks and Qorvo shares are down 2.2% and 1.6%, respectively. Skyworks shares have gained 33% over the past three months, as the S&P 500 has risen 10%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.