Record high 2018 iPhone shipments expected to boost TSMC, Foxconn bottom line

in iPhone edited September 2018
Apple chip producer TSMC and assembly partner Foxconn are expected to announce record revenue figures in its fourth quarter financial report later this year, after a report claims shipments of the next generation of iPhones will be the best since the launch of the iPhone 6.

The release of three iPhones next month will feature "impressive upgrades in overall designs and functions," according to industry sources of DigiTimes. Along with including the 5.8-inch and 6.5-inch OLED models as premium options, the inclusion of a lower-specification and more wallet-friendly 6.1-inch LCD model should, according to the report, "give the new devices a shipment momentum much stronger than their two preceding generations."

While TSMC and Foxconn stand to benefit considerably from the high shipments, most supply chain partners are thought to see an increase in revenues in the fourth quarter. Production of the devices is also expected to be "smooth" with relatively few manufacturing challenges to deal with, aside from volume.

For TSMC, it is noted the company has acquired all 7-nanometer foundry orders for A12 chips, which has helped the company pick up its revenues since July. It is said that Apple's A12 order has helped offset the drop in orders for cryptocurrency mining ASICs, as well as to help maintain a higher single-digit growth of 2018 revenues.

Earlier in August, TSMC revealed it had suffered a virus infection across some of its production lines, and has since recovered, though it is unclear if it has affected A-series chip production.

TSMC is currently expected to continue being the supplier of A-series chips to Apple until at least 2020. TSMC also benefits from a decision by the California-based GlobalFoundries to halt development of its 7-nanometer fabrication technology, leaving TSMC and Samsung as the only major players in the space.

While Foxconn reportedly shares assembly duty for the iPhones with Pegatron, Foxconn is said to have received the majority of orders for the two OLED models, and 30 percent of the LCD model order.

Volume production of the new iPhone models is believed to have raised Foxconn's July revenues to a new high for the month, with its revenue growth momentum tipped to continue throughout the rest of the year. Sources also anticipate Foxconn's profitability will be "significantly better" in the second half of the year compared to the first half.


  • Reply 1 of 9
    bluefire1bluefire1 Posts: 1,304member
    Another exciting autumn for Apple and us!
  • Reply 2 of 9
    Hopefully the 6.1 inch is excellent & lasts a long time.
    I believe it is going to be an iPhone 6 Killer.
  • Reply 3 of 9
    Will iPhone X optimized apps already work for 9 & 11 Plus display?

  • Reply 4 of 9
    nunzynunzy Posts: 662member
    Digitimes? We already know this will never happen. They are always wrong.
  • Reply 5 of 9
    wood1208wood1208 Posts: 2,917member
    Probably right as this time very large number of those holding on to older iPhones(5,5s,6,6s,7) are ready for upgrade so obviously there will be more demand than usual. Moreover, upcoming new iPhones more choices,better tech and hopefully bit cheaper especially iPhone 6.1" and new version of iPhone X will push the demand/upgrade. Now, older iPhones like 7,8.X will also become attractive with $100 price drop. Looks like life is good for Apple.
    edited August 2018 albegarcwatto_cobra
  • Reply 6 of 9
    racerhomie3racerhomie3 Posts: 1,264member
    wood1208 said:
    Those holding on to older iphones(5,5s,6,6s,7) are ready for upgrades so obviously there will be more demand than usual. Moreover, more choices,better tech and hopeful bit cheaper.
    If you want cheap don’t buy an iPhone. Go buy a $30 Android ‘smartphone’
  • Reply 7 of 9
    maestro64maestro64 Posts: 5,043member
    Not sure it will help Foxconn's bottom line since they appear to be loosing business elsewhere. 
  • Reply 8 of 9
    nunzy said:
    Digitimes? We already know this will never happen. They are always wrong.
    We know the whatever they say, the opposite is true.
  • Reply 9 of 9
    blastdoorblastdoor Posts: 3,345member
    nunzy said:
    Digitimes? We already know this will never happen. They are always wrong.
    These posts are art -- pitch perfect every time. 
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