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 have to rely on revenue and gross margin figures alone to assess performance.