Apple suppliers TSMC, Foxconn announce record December revenues as iPhone sales soar
The iPhone's strong holiday sales helped two of Apple's biggest supply chain partners --?Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry --?post record monthly revenues in December, according to the companies' regulatory filings with the Taiwan Stock Exchange.
TSMC announced December revenues of NT$69.51 billion ($2.17 bllion), while Hon Hai --?colloquially known as Foxconn --?brought in NT$515.57 billion ($16.24 billion) over the same period. That represents a nearly 40 percent year-over-year increase for TSMC and a more modest 5 percent bump for Foxconn.
Both firms are significantly invested in Apple's iPhone line and benefitted from blockbuster holiday sales of the popular handsets. One analysis suggests that Apple may have sold as many as 69 million iPhones in the December quarter, a year-over-year sales jump of more than 18 million units.
This despite serious constraints on iPhone 6 supply that lasted through Christmas. Apple retail outlets in the U.S. only began listing the devices as 'in stock' with no lead time last week.
Though TSMC has won smaller Apple orders in the past, 2014 marked the first year in which the Taiwanese company was chosen to fabricate Apple's A-series application processors. The latest A8 chip sits at the heart of the iPhone 6 and iPhone 6 Plus, while the iPad Air 2 boasts a slightly beefier A8X.
Foxconn, meanwhile, has a hand in assembling nearly every SKU in Apple's product lineup. The company is believed to have as many as 500,000 workers dedicated to its iPhone lines alone, and is reportedly investing some $2.6 billion into a new display factory that will exclusively serve Apple's business.
TSMC announced December revenues of NT$69.51 billion ($2.17 bllion), while Hon Hai --?colloquially known as Foxconn --?brought in NT$515.57 billion ($16.24 billion) over the same period. That represents a nearly 40 percent year-over-year increase for TSMC and a more modest 5 percent bump for Foxconn.
Both firms are significantly invested in Apple's iPhone line and benefitted from blockbuster holiday sales of the popular handsets. One analysis suggests that Apple may have sold as many as 69 million iPhones in the December quarter, a year-over-year sales jump of more than 18 million units.
This despite serious constraints on iPhone 6 supply that lasted through Christmas. Apple retail outlets in the U.S. only began listing the devices as 'in stock' with no lead time last week.
Though TSMC has won smaller Apple orders in the past, 2014 marked the first year in which the Taiwanese company was chosen to fabricate Apple's A-series application processors. The latest A8 chip sits at the heart of the iPhone 6 and iPhone 6 Plus, while the iPad Air 2 boasts a slightly beefier A8X.
Foxconn, meanwhile, has a hand in assembling nearly every SKU in Apple's product lineup. The company is believed to have as many as 500,000 workers dedicated to its iPhone lines alone, and is reportedly investing some $2.6 billion into a new display factory that will exclusively serve Apple's business.
Comments
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I would think robots could do better on US soil.
Apple sold a record number of iPhones in the December quarter, stock goes down 1.5%. Make sense, doesn't it?
iPhone sales roar? I'll say...
source
iPhone = wearable ?
Unless one has a clear financial picture into all of their assets and expenditures how could a person make any kind of informed statement?
I know Foxconn does other things, but I would have expected their revenues to be up by more than 5% given the huge apparent success of the current iPhones. Hopefully this means that Tim has been doing some tough bargaining with them.
Unless one has a clear financial picture into all of their assets and expenditures how could a person make any kind of informed statement?
What "person" and what "statement" are you referring to?
Are you talking about Hon Hai's statement to Taiwan Stock Exchange?
500k people building 60m phones over like 4 months is about one iphone per day per person on average.
I would think robots could do better on US soil.
NOTE: "…500,000 workers dedicated to its iPhone lines alone…" and I believe the entire production will be closer to 150 million in 2014.
Even so, just who would be capable of building the necessary robots to handle the trillions of micro-parts used in putting together ALL those iPhones.
Incidentally, when Obama asked Jobs about bringing production back to the US, Steve apparently said, "Never." What was not reported was the fact that it took "approximately 6,500 engineers just to manage the production of the iPhone"; something that was not available in America.
What Obama has been attempting to do (and I realize that this will raise the ire of many) with his higher education policies, is develop more American engineers to manage, create, invent and develop the necessary technologies/hardware/software. etc., and to oversee the design/production of all Apple products.
Obama isn't serious about higher education, he's trying to make political points and cast his opponents as being 'anti-education' by pushing an idea he never pursued when Democrats were firmly in control of Congress and the Senate. It's an unserious proposal and demonstrative of the kind of BS that both "sides" regularly engage in.
Also, here's a better analysis of this misbegotten idea by the WSJ: http://www.wsj.com/articles/the-obamacollege-plan-1421018672
500k people building 60m phones over like 4 months is about one iphone per day per person on average.
I would think robots could do better on US soil.
Not counting how long it would build the iphone-building robots, which at the moment do not exist. Then you'd have to build a new set of robots for the next phone, leading to a double-debug cycle and a loss of competitive advantage due to a delay in releasing the phone.
Not counting how long it would build the iphone-building robots, which at the moment do not exist. Then you'd have to build a new set of robots for the next phone, leading to a double-debug cycle and a loss of competitive advantage due to a delay in releasing the phone.
Why? All you'd need to do is reprogram the robots for the new devices and even then you don't have to get rid of the old programming.
At worst you'd have to retool them but you don't need to build new ones just for a new model.
500k people building 60m phones over like 4 months is about one iphone per day per person on average.
I would think robots could do better on US soil.
Some cars are handmade and produce 1 car per year. The fact they are handmade adds value.
Obama isn't serious about higher education, he's trying to make political points and cast his opponents as being 'anti-education' by pushing an idea he never pursued when Democrats were firmly in control of Congress and the Senate. It's an unserious proposal and demonstrative of the kind of BS that both "sides" regularly engage in.
Also, here's a better analysis of this misbegotten idea by the WSJ: http://www.wsj.com/articles/the-obamacollege-plan-1421018672
Well, I don't subscribe to the WSJ, and I doubt that you do. I will apologize if you send me a transcript to the article.
In the meantime, are you suggesting that attempting to educate Americans to a higher standard is not a good idea, no matter where it comes from? Or do you have a better idea.
By the way, the Republican Governor of Tennessee concurs with the Obama Plan.
Also, here's a better analysis of this so-called misbegotten idea by the IHE: https://www.insidehighered.com/news/2015/01/12/obama-joined-republicans-unveiling-free-community-college-plan
I'm not a Republican and I disagree that other people should be financially responsible for the "care and feeding" of other people's children. If a couple can't afford 'em, don't have 'em!
It's a really simple concept. Just like placing a bet, and when the team you chose wins you cash out. Which is why stocks go up on rumors, and down on news.