STOCKS NEWS EUROPE-IQE up as customer benefits from strong iPhone sales

Shares in British semiconductor materials maker IQE (LSE: IQE.L - news) rise as much as 3.7 percent after Apple (NasdaqGS: AAPL - news) reports strong sales of its new iPhone 5S and 5C, which uses components from IQE's customer RF Micro Devices (NasdaqGS: RFMD - news) .

"There is positive read-across from Apple, which had the strongest first weekend shipment of the iPhone. It turns out RFMD gained share in Apple's iPhones and IQE is primary supplier to RFMD. IQE supplies around 90 percent of RFMD's EPI wafers, so there is an indirect link to Apple's strong shipments," Liberum Capital analyst Eoin Lambe says.

IQE, whose products are used in microchips in smartphones, tablets, GPS equipment as well as light-emitting or light-detecting devices, has been investing heavily in its core wireless business which accounts for nearly 80 percent of revenue.

Apple said on Monday it sold 9 million units of iPhone 5S and iPhone 5C models in the first three days since their launch.

Reuters messaging rm://tasim.zahid.thomsonreuters.com@reuters.net