On its recent earnings call, Skyworks announced that it would lose 20%-25% of its content in its largest customer?s next phone cycle, due to the customer?s decision to dual source a major socket that it had previously single sourced from Skyworks. The loss will begin to impact revenue in the quarter ending in early October 2025. Despite the meaningful loss, our 'BBB-' rating is unchanged. Skyworks? significant customer and end market concentration drove our positioning of Skyworks in the fair business risk category, which provides some cushion for volatility in operating metrics arising from these concentrations. We view the content loss as a one-time shift in market share relating to the customer?s desire to diversify its suppliers; we don?t believe
