Apple suppliers TSMC, Foxconn announce record December revenues as iPhone sales soar

Posted:
in iPhone edited January 2015
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.

iPhones 2014


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

  • Reply 2 of 18
    jason98jason98 Posts: 750member
    500k people building 60m phones over like 4 months is about [B]one[/B] iphone per day per person on average.
    I would think robots could do better on US soil. ;)
  • Reply 3 of 18

    Apple sold a record number of iPhones in the December quarter, stock goes down 1.5%. Make sense, doesn't it?

  • Reply 4 of 18
    Quote:

    Originally Posted by PhilBoogie View Post



    iPhone sales roar? I'll say...







    source



    iPhone = wearable ?

  • Reply 5 of 18
    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.
  • Reply 6 of 18
    retrogusto wrote: »
    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?
  • Reply 7 of 18
    MacProMacPro Posts: 17,382member
    What a shame this also means Scamsung also made a lot of money thanks to the company they steal from at every chance.
  • Reply 8 of 18
    You gotta share the wealth with your suppliers. If TSMC continues to flourish and invest in developing better manufacturing facilities, Apple will benefit immensely by having strong alternative suppliers, other than Samsung.
  • Reply 9 of 18
    crowleycrowley Posts: 5,430member
    zoffdino wrote: »
    Apple sold a record number of iPhones in the December quarter, stock goes down 1.5%. Make sense, doesn't it?
    Yes, because the stock has only a passing relationship to results, whereas it is directly related to expectations. If expectations of Apple, whether through realisation of results or any other factor, are lowered, then the stock price will follow suit.
  • Reply 10 of 18
    bobschlobbobschlob Posts: 1,074member
    Quote:

    Originally Posted by SpamSandwich View Post

     
    Quote:

    Originally Posted by Retrogusto View Post



    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?

  • Reply 11 of 18
    onhkaonhka Posts: 1,025member
    Quote:

    Originally Posted by jason98 View Post



    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. image

    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.

  • Reply 12 of 18
    onhka wrote: »
    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
  • Reply 13 of 18
    Quote:

    Originally Posted by jason98 View Post



    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. image



    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.

  • Reply 14 of 18
    Quote:

    Originally Posted by DogCowabunga View Post

     



    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.

  • Reply 15 of 18
    Quote:



    Originally Posted by jason98 View Post



    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. image

    Some cars are handmade and produce 1 car per year. The fact they are handmade adds value.

  • Reply 16 of 18
    onhkaonhka Posts: 1,025member
    Quote:

    Originally Posted by SpamSandwich View Post





    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

  • Reply 17 of 18
    onhka wrote: »

    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!
  • Reply 18 of 18
    dasanman69dasanman69 Posts: 12,951member
    zoffdino wrote: »
    Apple sold a record number of iPhones in the December quarter, stock goes down 1.5%. Make sense, doesn't it?

    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.
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