The launching of the iPhone 12 brought about increased revenues for Apple as demand grew beyond expectations. TSMC and Hon Hai, two Taiwanese partners of Apple, reported higher earnings than projected in recent months.
In the last third quarter of 2020, Xiaomi surpassed Apple in the third place for Global Sales due to the delay in the launching of the iPhone 12. But since launching, Apple encountered a robust demand such that Apple experienced a shortage of power chips for iPhone 12.
Debby Wu of Bloomberg cited the growing demand for silicon across many products and the disruptions of supply-chain brought about by COVID are the two main causes for the shortages. The chipmakers explained that 5G Smartphones use 30% to 40% more chips than 4G.
Apple’s power chips supplier
Taiwan Semiconductor Manufacturing Company (TSMC) is one of the biggest chipmakers in the world and Apple’s power chip supplies. In its recent financial report, it announced a total December sale of $117.4 billion. Fourth-quarter revenues reached a record of 361.5 billion, according to explica.
Tim Culpan, an Opinion columnist of Bloomberg, said that when the US blocked Huawei Technologies Company from getting into the American technology to manufacture its chips, Taiwan Semiconductor Manufacturing Company’s share dropped to more than 25%. Since its lowest drop in March 2020, TSMC shares have risen by 135%.
The company sees further growth potential especially with the uptrends going on. As Apple’s Intel processors transition to Apple Silicon, which uses the chips the Taiwanese company supplies.
Hon Hai: Apple’s biggest ODM partner
Hon Hai Precision Industry Co., LTD, commonly known as Foxconn, is Apple’s biggest Original Device Manufacturer (ODM) partner. Bloomberg reported that Hon Hai saw a huge sale of the latest 5G line-up, says Tomar of micky.
In fact, the company was surprised to see quarterly revenues to exceed expectations. Attributing this to the high demand for the latest smartphone series of Apple. The Taiwanese company reported quarterly earnings from the sold units to reach a record high of $71 billion exceeding its $64 billion expectations.
Sales exceeding expectations from the two partner companies above indicates the high demand for Apple’s iPhone 12 line-up.
iPhone 12: best-selling 5G smartphone
Counterpoint Research reported that iPhone 12 became the best-seller 5G smartphone in the world for two straight weeks after launch. Followed by the iPhone 12 Pro who ranks as the second best-selling 5G smartphone, according to Wituschek of iMore.
Data shows that the two models alone comprise almost a quarter of the total sales in the month of October. Counterpoint further said that the success of the iPhone line-up is due to both the increasing demand for the 5G iPhone accompanied by the company’s aggressive promotions. The report expects the sales to remain strong moving forward.
The iPhone 12 line-up gains the consumer’s heart because of its major design overhaul. It comes with 4 variants namely: iPhone 12, iPhone 12 mini, iPhone 12 Pro, and iPhone 12 Pro Max.