iPhone. Source: Apple.

Few companies have had a bigger impact on the technology industry than Apple (NASDAQ:AAPL), whose revolutionary products have changed the landscape in consumer technology. Apple has also helped turn many previously unknown suppliers into well-known companies in their own right.

Skyworks Solutions (NASDAQ:SWKS) has reaped long-term rewards from building many of the chips that enable products from Apple and other manufacturers to communicate and connect to wireless networks. Yet, even as Apple has launched its latest iPhone 6 models, Skyworks hopes to jump onto the coattails of an even larger trend in technology that could bolster its results for years to come.

Skyworks is one of the rare technology companies that have almost completely recovered from its losses during the 2000-2002 bear market. In large part, becoming an Apple supplier got Skyworks back onto the radars of mainstream investors. But lately, Skyworks has sought to profit from the Internet of Things movement, with its chips helping to connect the billions of devices that experts expect to communicate with one another by the end of the decade. Let's take a closer look at Skyworks Solutions to see if the stock can sustain its impressive climb.

Stats on Skyworks Solutions

2014 YTD Return


Expected Fiscal 2014 Revenue Growth


Expected Fiscal 2014 EPS Growth


Expected 5-Year Growth Rate


Source: Yahoo! Finance.

Can Skyworks Solutions keep up its breakneck pace?
Throughout the year, Skyworks has impressed investors with its growth. In April, the company's fiscal second-quarter results showed not only that Skyworks grew revenue by 13%, and topped earnings estimates, but also that it managed to boost its operating margins by nearly four full percentage points. Those figures show how successful Skyworks has been in keeping costs down and improving its competitiveness against potential rivals.

CEO David Aldrich attributed the growth to Skyworks' ability to provide customized solutions for its numerous customers, avoiding the temptation to provide cookie-cutter commoditized chips in favor of specialized solutions that keep customers satisfied and loyal. Skyworks' third-quarter results were also impressive, with a 35% rise in revenue, leading to gains of more than 50% in adjusted earnings per share.

Apple has undoubtedly played a big role in Skyworks' long-term success; but during the past couple of years, the two companies have stopped tracking each other as closely as they did in the past. Apple archrival Samsung has become a major customer for Skyworks, as well. With Skyworks' reputation for delivering exactly what each individual customer needs, investors are counting on the company to be able to serve the needs of any future competitors in the mobile-device market that challenge the two current smartphone leaders.

The biggest potential win for Skyworks Solutions
Looking forward, Skyworks expects the Internet of Things to expand its customer base by making its connectivity chips a ubiquitous part of a wider range of products. A recent joint venture with electronics-maker Panasonic to make high-performance filters in electronic devices could help improve signal quality, making them more efficient. Other partnerships with medical device makers, including the healthcare division of industrial conglomerate General Electric (NYSE:GE), show the breadth of the potential market for high-quality connectivity solutions.

Source: Skyworks.

In addition to the Internet of Things, Skyworks has its hand in many other high-profile areas. The rise in popularity of streaming music and video, mobile payment systems, and cloud-based applications will make secure and reliable connectivity solutions extremely important, opening new opportunities for Skyworks. As traffic levels increase, it's important to have chips that can address specific needs rather than relying on generic solutions. This increases customers' flexibility in handling their own systems, giving Skyworks a leg up on its competition.

In that light, any success Skyworks has with the launch of the iPhone 6 is just icing on the cake. With most analysts expecting Apple to sells tens of millions of its new smartphones, Skyworks can expect a nice bump to its short-term growth, even as it sets the stage for longer-term domination. Smart investors should keep their eyes on Skyworks Solutions long after the latest hype about Apple's product releases starts to die down.