Apple Suppliers Hon Hai and TSMC Post Solid Growth in November [Report]

Apple suppliers Hon Hai Precision (Foxconn) and Taiwan Semiconductor Manufacturing Co (TSMC) both posted solid growth in November which could alleviate some investor concern over iPhone demand, reports Bloomberg.

While reflecting just 30 days of business, TSMC’s and Hon Hai’s performance comes in the middle of the year’s busiest quarter and may help balance the narrative that Apple’s latest line-up -- particularly the cheapest iPhone XR -- is falling flat with global consumers. Hon Hai’s November revenue of NT$601.4 billion ($19.5 billion) was a record for the month and takes January-November sales growth to almost 16 percent -- on track for its fastest pace of annual growth in years.

TSMC posted sales of NT$98.4 billion which was a reduction in growth from October but still a good performance. Apple accounts for about a fifth of TSMC's revenue and nearly half of Hon Hai's.


This good news follows numerous reports from Apple component suppliers like Lumentum, Cirrus Logic, Qorvo, and others that have significantly cut projections for this quarter and the next. Analysts are concerned that demand for Apple's iPhone is waning and the company's recent sale tactics appear to support this.

Morgan Stanley recently predicted that iPhone unit sales will fall 8% to 200 million this year, slashing its target price for AAPL to $236 from $253.

More details in the full report linked below.

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