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.
Apple supplier Foxconn is gearing up to hire more workers for its plants in Zhengzhou, China by offering bonuses to workers who help assemble Apple's 2018 iPhones. Apple supplier Foxconn Technology Group is making a shift in its expansion plans to Wisconsin in the United States, where it will now produce small to medium-size displays for Apple and other customers. This is a change from its original plan of having the Wisconsin plant produce large television displays, and the move to smaller displays is said to help lower initial costs at the factory (via Nikkei).In total, Foxconn's Wisconsin plant will make displays for car infotainment systems, personal computers, tablets, smartphones, smaller televisions, and other 'niche products.'
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If the supplier kept on track with building large TV displays, the output would have required a 'more complete' local supply chain lacking in the state, and a greater initial monetary investment for production equipment.' Previously, Foxconn planned to build a 10.5th-generation display manufacturing factory, which is more suitable for large-sized displays,' supply chain sources told Nikkei.' But later they figured out that it might be more feasible and efficient to build a sixth-generation display plant or an 8.5th-generation factory from which they could move some equipment from Asia.'
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The incomplete local supply chain is believed to have been one of the bigger obstacles to Foxconn's large panel plans in Wisconsin. Sources speaking to Nikkei said, 'It would require other companies like Corning to also set up a glass substrate facility nearby, as it's almost impossible to ship fragile, huge size glass materials from a distant place.' Foxconn has been open to building a facility in the. Foxconn is best known as an Apple supplier that assembles Apple's devices and supplies components to the Cupertino-based company, but as of today, it's taking over a major Apple accessory maker.Foxconn Interconnect Technology (FIT), a Foxconn subsidiary, today announced that it has acquired Belkin International in a deal that's worth $866 million. The acquisition includes the Belkin brand along with Linksys, Wemo, and Phyn, other companies owned by Belkin. One of Belkin's recently introduced wireless charging accessories The acquisition will allow Foxconn Interconnect Technology to 'further tap into premium accessories and the smart home market.'
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