A pair of companies critical in producing the iPhone enjoyed very strong sales in November. While not definite, this is a clear hint that the recent pessimism about sales of Apple’s handsets is unjustified.
Apple’s share price has dropped about 25 percent in the past couple of months on previous equally vague but negative reports.
Potentially positive news about iPhone sales
Taiwan’s TSMC is the only company with the technical expertise to make Apple’s A-series processors. Its sales increased 5.6 percent in November.
Hon Hai/Foxconn, another Taiwanese company, famously assembles many iPhone units in China. In an interesting coincidence, it’s sales also increased 5.6 percent last month.
Both of these work with other businesses besides Apple, so the fact that they’re seeing increased sales doesn’t automatically mean the iPhone is flying off shelves. However, reports of slowing sales from other companies that supply iPhone components have been taken by numerous analysts as indications that Apple’s current handsets are performing poorly.
One might assume that the news from TSMC and Foxconn would lead to a rise in Apple’s share price. Nope. It’s down $0.98 today.
Apple has chosen to not reveal anything specific about how well the iPhone XS, XS Mac, and iPhone XR are doing. A company executive did say the iPhone XR is outperforming the more expensive XS series, though.
Via: Bloomberg