Serving the smartphone industry, and Apple (AAPL)
in particular, can be a mixed blessing. While the volume, revenue, and
profit potential can be considerable, the smartphone industry is highly
competitive and worries about shipment growth can create a lot of
volatility. So it has been for Alps Electric (OTCPK:APELY)
- while this leading component manufacturer for phones and autos has
done well recently with its smartphone-facing business, worries about
demand for the iPhone X have played a big role in the recent 15% drop in
the share price.
I like the fact that Alps is
shifting more towards auto, as I think the company has a wide range of
technologies/capabilities that fit with where the auto sector is moving.
Although the shares have performed pretty well since my last update
(up around 40%), I think there could be another 20%-plus move in the
shares as investors calm down about the smartphone business and start
seeing more progress in the auto business over the next 12 months.
Investors should note that Alps' U.S. ADRs are not especially liquid.
Read the full article here:
Alps Electric's Shift Towards Auto Will Unlock More Growth
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