Multiple Apple Suppliers Share Revenue Reports Ahead of 'Peak' iPhone and Apple Watch Season

by

A collection of Apple suppliers have shared revenue reports today, which also provide a glimpse into the upcoming "peak" iPhone and Apple Watch manufacturing season. Starting off, Foxconn looked back at its profits in July and reported consolidated revenues of NT$315.06 billion (US$10.62 billion) for the month, which marks an increase of 7.53 percent year-on-year. For the first seven months of 2017, Foxconn's combined revenues were NT$2.2 trillion, increasing by 1.64 percent year-on-year (via DigiTimes).

Those watching Foxconn's revenue report are now expecting the October-December period to be the "peak of 2017" for the company, thanks to its status as one of Apple's biggest suppliers and the launch of the iPhone 8 sometime in September. Foxconn's revenue will increase "gradually" in August, according to market watchers, and will continue until the end of the year. Holiday spending traditionally helps increase Apple and its suppliers' revenue, even boosting Foxconn's December period in 2016 in the face of an overall year that saw its first-ever profit decline.

Check out our recent hands-on with an iPhone 8 dummy model

Some market watchers expect Foxconn's revenues to increase gradually beginning August and the growth will last until the end of 2017 with the fourth quarter being the peak of 2017 for Foxconn.

Apple Watch supplier Quanta Computer announced revenues for the second quarter of 2017 at NT$235.37 billion (US$7.93 billion), growing 3.3 percent from the previous quarter and 13.3 percent from the year-ago quarter. Today's report stated that next-generation Apple Watch shipments will begin in the fourth quarter, gradually increasing Quanta's financial performance in the second half of 2017 -- a sentiment that's been shared in previous supply chain reports due to Quanta's status as the sole supplier of the "Apple Watch Series 3."

With the notebook market entering the traditional peak season, its server shipments expected to enjoy growth and the next-generation Apple Watch set to begin shipments in the fourth quarter, some market watchers expect Quanta's financial performances to gradually pick up in the second half of 2017.

In other supply chain ramp-up stories, TSMC has entered mass production on the iPhone 8's A11 chip in the third quarter of 2017. The next-generation chip is being crafted with a new 10-nanometer FinFET process, and originally began production back in May after a month-long delay. TSMC is also using its 10nm manufacturing process to build the new iPad Pro's A10X processors, and it's predicted the A11 processors will also find their way into the "iPhone 7s" and "iPhone 7s Plus."

In addition, TSMC has already started mass production of 10nm FinFET chips in the third quarter, driven by Apple's orders, the report indicated. TSMC's 10nm FinFET process has been adopted by Apple for its A10X processors for use in its 10.5- and 12.9-inch iPad Pro tablets and A11 chips that will power the upcoming iPhones.

There have been numerous reports from Apple's supply chain in recent weeks, timed ahead of the rumored announcement of the iPhone 8 in September. These include a report centered on Lumentum and "massive" orders it has received for components related to its vertical-cavity surface-emitting lasers. Such technology is believed to be for the advanced camera and 3D sensing features of the iPhone 8.

Last week, all three new iPhones were reportedly entering volume production, and Samsung Display began gearing up to operate seven of its next-generation OLED lines at full capacity earlier this month, all aimed at the iPhone 8. In terms of the main suppliers for Apple's next-generation OLED smartphone, Foxconn, Pegatron, and Wistron are predicted to hit a sales high in the period running from September to November of this year, due to shipments of finished iPhones that will "start gaining momentum" as soon as this month.

Top Rated Comments

(View all)
Avatar
38 months ago

And you people worried

Who are "you people"? Investors or iPhone customers?
Score: 1 Votes (Like | Disagree)

Top Stories

iPhone 12 Sizes Compared with iPhone SE, 7, 8, SE 2, X, 11, 11 Pro and 11 Pro Max [Update]

Tuesday July 7, 2020 6:49 pm PDT by
Apple is planning on launching the iPhone 12 this fall which is rumored to be coming in 3 different sizes: 5.4", 6.1" and 6.7". The middle size (6.1") matches up with the currently shipping iPhone 11, but the other two sizes will be entirely new. Over the weekend, there was some excitement about how well the new 5.4" iPhone 12 compares to the original iPhone SE. Those who have been hoping...

Everything New in iOS 14 Beta 2: New Calendar Icon, Files Widget and More

Tuesday July 7, 2020 11:38 am PDT by
Apple today released the second beta of iOS 14 to developers for testing purposes, tweaking and refining some of the features that are coming in the update. Below, we've rounded up all of the changes that we found in the second beta. - Calendar icon - There's a new Calendar app icon in iOS 14 beta 2, with the day of the week abbreviated rather than spelled out. - Clock icon - The clock...

Hands On With iPhone 12 Models Showing New Sizes and Design

Monday July 6, 2020 2:04 pm PDT by
Ahead of the launch of new iPhones we often see dummy models created based on leaked schematics and specifications, with those models designed to let case makers create cases for the new devices ahead of their release. We got our hands on a set of dummy models that represent the iPhone 12 lineup, giving us our first close look at the iPhone 4-style design and the different size options. Subscri ...

Developer's Visual Comparison of macOS Catalina and Big Sur Offers Closer Look at Apple's UI Redesign for Macs

Tuesday July 7, 2020 4:00 am PDT by
macOS 11 Big Sur is the next major release of Apple's operating system for Mac, and following its preview at WWDC, one of the biggest discussions has revolved around the all-new user interface redesign. Developers are still learning what the impact the new UI will have on their apps, and with that in mind, app designer Andrew Denty has compiled an extensive visual comparison of the user...

Analyst Believes iPhone 12 Pricing Will Start $50 Higher Even Without EarPods or Charger in Box

Wednesday July 8, 2020 9:35 am PDT by
Despite multiple reports indicating that Apple will not include EarPods or a wall charger with iPhone 12 models this year, one analyst believes that pricing will still increase slightly compared to the iPhone 11 lineup. In a research note provided to MacRumors, analyst Jeff Pu forecasted that iPhone 12 pricing will start at $749 for a new 5.4-inch model, an increase of $50 over the base...

14-Inch MacBook Pro With Mini-LED Display Expected to Enter Production in 2021

Wednesday July 8, 2020 7:51 am PDT by
Apple suppliers will begin competing to win manufacturing orders for new 14-inch and 16-inch MacBook Pro models with Mini-LED displays in the first quarter of 2021, according to Taiwanese research firm TrendForce. Rumors of a 14-inch MacBook Pro have surfaced since Apple replaced the 15-inch MacBook Pro with a new 16-inch model last year. Apple analyst Ming-Chi Kuo has previously said that...

Apple Seeds First Betas of iOS 14 and iPadOS 14 to Public Beta Testers

Thursday July 9, 2020 10:14 am PDT by
Apple today seeded the first public betas of upcoming iOS and iPadOS 14 updates to its public beta testing group, two weeks after first providing the updates to developers after the WWDC keynote and a day after seeding the second developer betas. Public beta testers who have signed up for Apple's beta testing program can download the iOS/‌iPadOS‌ 14 updates over the air after installing ...

Apple's Arm-Based Macs With Apple Silicon Chips Will Support Thunderbolt

Wednesday July 8, 2020 3:14 pm PDT by
Apple is working on Macs that use its custom Apple-designed Apple Silicon chips instead of Intel chips, but Apple has committed to continuing to support Thunderbolt, reports The Verge. In a statement, an Apple spokesperson said that Apple's upcoming machines will offer support for Intel's Thunderbolt USB-C standard. "Over a decade ago, Apple partnered with Intel to design and develop...

Apple Cuts iPhone Trade-In Values as iPhone 12 Launch Nears

Tuesday July 7, 2020 7:46 am PDT by
With just two months to go until the usual timeframe for Apple's iPhone launch events, Apple is cutting back on maximum trade-in values of previous-generation iPhones for those looking to upgrade to a new model. Maximum values on more recent models have dropped by $30–$50, while older models have generally dropped by $5–$20 with a few models seeing no change in value.iPhone XS Max: $500 to...

Some iPhone Users Report Significant Battery Drain Due to Music App Background Activity in iOS 13.5.1

Wednesday July 8, 2020 1:49 am PDT by
A significant minority of iPhone users have taken to Apple's Support Communities and Reddit to report battery drain issues largely related to the Music app and high levels of background activity. Hundreds of users, many running iOS 13.5.1 on devices both new and old, are experiencing rapid battery drain when the Music app is not in use. In some cases, the background activity occurs over...