Will A New $1,200 IPhone Help Apple Vendors Like Jabil Stock?

Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s
AAPL
devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ
NDAQ
: AAPL), which has gained about 40% year-to-date. Now, Apple’s recent performance has actually been pretty mixed. Over Q3 FY’23, the most recently reported quarter, the company saw overall revenues shrink year-over-year, as demand for core computing products including the iPhone, iPad, and Mac fell as tailwinds seen through Covid-19 eased. Major suppliers like Jabil
JBL
and Qorvo have seen revenue decline or flatten year-over-year.

Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. Compare this with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.