As previously mentioned, we expect smart phones, and iPhones specifically, to continue to drive the new technology secular growth cycle over the next five to seven years. Smart phones will drive new technology adoption and change user behavior around technology. Therefore, those companies that supply into smart phones are particularly interesting in this cycle.

A relatively less well-known company, TriQuint Semiconductor ( TQNT – news – people ), is a supplier to Apple’s ( AAPL – news – people ) iPhone. It makes Radio Frequency semiconductors for three markets: handsets, networks and military. The percentage of revenues earned in the handset market has been increasing sequentially, from 48% of revenues five quarters ago to 65% this past quarter, driven by the growth in smart phones and 3G.

TriQuint supplies to all the major smart-phone makers (including Apple, Research in Motion  ( RIMM -  news  -  people ) and HTC) with the exception of Nokia  ( NOK -  news  -  people ). Not supplying to Nokia isn’t a huge concern as Nokia’s overall smart phone market position continues to deteriorate thanks to TriQuint’s other customers. And TriQuint could yet win Nokia as a customer. TriQuint’s handset revenue increased 56% from the first quarter and 77% from the quarter a year ago. Just to reiterate: TriQuint’s handset revenues increased 77% from a year ago during a terrible financial crisis such that most companies in most sectors reported negative comparisons to the period a year prior.

Source-forbes.