iPhone Suppliers TSMC and Foxconn Report Strong November Revenue

[MacRumors]

Two of Apple's largest suppliers have reported healthy jumps in monthly revenue, suggesting fears of weak iPhone demand may be overblown (via Bloomberg).

Asian firms TSMC and Foxconn (Hon Hai) both posted a 5.6 percent rise in November sales, reversing a recent trend of Apple suppliers reducing production or revenue outlooks to reflect lowering demand for Apple's smartphones.

Foxconn posted NT$601.4 billion ($19.5 billion) in revenue, a record for the month of November, which puts the iPhone assembler on track for its fastest pace of annual growth in years.

TSMC, maker of Apple's system-on-chips like the A12 processor, reported revenue of $3.1 billion, a lower figure than the previous month but still considered strong overall. Executives at the chipmaker have said they expect demand for premium devices to help offset lethargy in the crypto-mining market, which it has heavily invested in.

Apple accounts for close to half of main iPhone-assembler Hon Hai's revenue and about a fifth of TSMC's, according to data compiled by Bloomberg.

The figures offer something of a riposte to the narrative that sales of Apple's iPhone XR and XS have been weaker than expected. For example, last week it was reported that Apple moved marketing staff off other projects to focus on bolstering sales of the latest iPhone lineup in late October.

Apple's next earnings call is in January, when investors will get an idea of how the company did over the holiday season, although Apple recently stopped reporting real unit numbers for its major product categories, so investors will have to rely on revenue and gross margin figures alone to assess performance.

Article Link: iPhone Suppliers TSMC and Foxconn Report Strong November Revenue

 

[maflynn]

So much for the talk that Apple has peaked and sales are shrinking ¯\_(ツ)_/¯

 

[AppleHaterLover]

So much for the talk that Apple has peaked and sales are shrinking ¯\_(ツ)_/¯

Not quite.

It's a very well known fact that demand picks up for the holidays. Considering that we probably had a low baseline this year (due to demand being lower than expected), when it picked up it really showed (even if probably not to previous years' levels).

But then again, who knows.

 

[tromboneaholic]

Not quite.

It's a very well known fact that demand picks up for the holidays. Considering that we probably had a low baseline this year (due to demand being lower than expected), when it picked up it really showed (even if probably not to previous years' levels).

But then again, who knows.

This is an increase over last year's sales. It's holiday period 2017 vs holiday period 2018.

 

[Darmok N Jalad]

It’s like we do this every year or something.

 

[magicschoolbus]

Good. XR is a great phone

 

[justperry]

We'll know what was accurate when the numbers/revenue are announced later on...

 

[djcerla]

What a successful fraud scheme has been. All perfectly timed, and basically everyone believed in the silliness.

 

[Mjmar]

The Apple website home page tells a different story....

 

[evansls]

You don’t say?

Formula: pundits/critics report sales are down, but then report 1 month later from suppliers sales are up. ‍♂️

 

[tromboneaholic]

The Apple website home page tells a different story....

It's a different market than it was 5 years ago. Don't expect a company like Apple to stand still when it comes to marketing.

 

[Abazigal]

The same crap happens every year. Come this time, the “pundits” claim that iPhone demand is week, only for Apple to report record earnings next January.

And best of all? This forum is party to why this nonsense keeps perpetuating.

 

[djcerla]

The Apple website home page tells a different story....

What "story" exactly? I only see gifts for the holidays and the usual stuff.

 

[newyorksole]

Very curious how Apple will do with their Q1 results...

I think they’re still going to do fairly well.

 

[Romeo_Nightfall]

i can only tell you that in austria samsung phones are half the price of iphones ... i mean if people buy iphones OK, but for me its hard to find a real explanation

 

[Quu]

Two of Apple's largest suppliers have reported healthy jumps in monthly revenue, suggesting fears of weak iPhone demand may be overblown.

You mean TSMC who makes the microchips for almost everything including all of AMD's GPU's, all of NVIDIA's GPU's most of the Qualcomm stuff and even Huewei's CPU's for their phones had a strong November when there is already a backlog of 6 months to get anything fabbed there? oh my god.

Also is that the same Foxconn that assembles all the Amazon devices, Apple iPads, Google Chromecasts, all the Microsoft Surfaces, the XBOX the Nintendo Switch and the PS4? - Damn you'd think with lowered iPhone sales they'd be basically on the street begging for business.

 

[TonnyM]

It seems that Apple will have strong holiday quarter. I stopped believing all doom and gloom raports last year when they were completely wrong on iPhone X demand.

 

[JCCL]

This doesn’t say anything about iPhone sales. Both companies have a huge portfolio of clients like the company above say. Foxconn pretty much manufactured every big name consumer devices, From an iPhone to an HP laptop to an Xbox....

 

[tromboneaholic]

This doesn’t say anything about iPhone sales. Both companies have a huge portfolio of clients like the company above say. Foxconn pretty much manufactured every big name consumer devices, From an iPhone to an HP laptop to an Xbox....

A cut in iPhone production (as was reported) would have been reflected in the November numbers.

 

[Scottsoapbox]

Revenues reporting varies based on both position in the supply chain and accounting practices, but hey let's ignore those to fit the narrative.

January's earning report will be the most revealing data even without unit sold numbers.

 

[AJ5790]

The Apple website home page tells a different story....

True. It says they’ve gotten smart, and have decided that getting $500 cash and a phone they can sell for $500 will make them more money than $700 cash. Go figure.

 

[mdnz]

You mean TSMC who makes the microchips for almost everything including all of AMD's CPU's, all of NVIDIA's GPU's most of the Qualcomm stuff and even Huewei's CPU's for their phones had a strong November when there is already a backlog of 6 months to get anything fabbed there? oh my god.

Also is that the same Foxconn that assembles all the Amazon devices, Apple iPads, Google Chromecasts, all the Microsoft Surfaces, the XBOX the Nintendo Switch and the PS4? - Damn you'd think with lowered iPhone sales they'd be basically on the street begging for business.

Don't speak logic here, it's not appreciated! Some people are under the assumption TSMC only makes iPhone chips or something.

 

[AJ5790]

You mean TSMC who makes the microchips for almost everything including all of AMD's CPU's, all of NVIDIA's GPU's most of the Qualcomm stuff and even Huewei's CPU's for their phones had a strong November when there is already a backlog of 6 months to get anything fabbed there? oh my god.

Also is that the same Foxconn that assembles all the Amazon devices, Apple iPads, Google Chromecasts, all the Microsoft Surfaces, the XBOX the Nintendo Switch and the PS4? - Damn you'd think with lowered iPhone sales they'd be basically on the street begging for business.

And yet, if the revenue was down, immediately that would be Apple being doomed again.

 

[Rogifan]

Not quite.

It's a very well known fact that demand picks up for the holidays. Considering that we probably had a low baseline this year (due to demand being lower than expected), when it picked up it really showed (even if probably not to previous years' levels).

But then again, who knows.

“Due to demand being lower than expected”. Source?

 

[Darmok N Jalad]

The same crap happens every year. Come this time, the “pundits” claim that iPhone demand is week, only for Apple to report record earnings next January.

And best of all? This forum is party to why this nonsense keeps perpetuating.

It almost seems like stock manipulation in order for a quick gain. Speculators are going to speculate.

You mean TSMC who makes the microchips for almost everything including all of AMD's CPU's, all of NVIDIA's GPU's most of the Qualcomm stuff and even Huewei's CPU's for their phones had a strong November when there is already a backlog of 6 months to get anything fabbed there? oh my god.

Also is that the same Foxconn that assembles all the Amazon devices, Apple iPads, Google Chromecasts, all the Microsoft Surfaces, the XBOX the Nintendo Switch and the PS4? - Damn you'd think with lowered iPhone sales they'd be basically on the street begging for business.

I guess you’d have to see which devices might be causing their big spike in production. It could be all those low-margin Amazon devices and game consoles nearing saturation point, or it might be the new stuff Apple announced. The point is, supplier reports are not enough information to go on, especially once they start contradicting each other.