Apple’s main iPhone supplier Foxconn was able to set a new monthly sales record thanks to “storming demand” for the new iPhone 14 Pro and iPhone 14 Pro Max. Looking ahead, the company is “cautiously positive” about the forthcoming holiday quarter’s results.
Foxconn ‘cautiously optimistic’ for the upcoming holiday quarter
CNBC recently reported that Foxconn set a new revenue record for the month of September.
Foxconn said September revenue totaled 822.3 billion new Taiwan dollars ($25.9 billion), up 40.4% year-on-year and 83.2% higher than August, a monthly sales record for the company.
The Taiwanese company’s revenue for the month of September can largely be accredited to the launch of Apple’s new iPhone 14 Pro models. Demand for the new models has been so strong that Apple asked its main iPhone supplier Foxconn to increase production by 10%, shortly after they were launched.
That massive revenue growth was driven by a “new product launch and smooth mass production” as well as strong performance of its smart consumer electronics products division, which includes its key smartphone business. Foxconn does not name its customers, including Apple, in its earnings releases.
Neil Shah, a partner at Counterpoint Research, said Foxconn’s record revenue came on the back of “storming demand” for the higher priced iPhone 14 Pro and Pro Max models, which were launched last month.
The company is “cautiously positive” on the outlook for the fourth quarter considering all the factors that may impact its business such as the “dynamics of inflation, the pandemic, and the supply chain still need to be closely monitored,” Foxconn said.
Numerous reports have helped us gain insight into just how strong the demand is for this year’s iPhone 14 Pro models. One report estimates that the iPhone 14 Pro models are now expected to account for 60–65% of the total iPhone 14 shipments in the second half of this year. Out of the two, the Pro Max will account for 30–35% of the total shipments.
Another revealed that the iPhone 14 Pro Max could help Apple’s market share for high-end smartphones stabilize at 60%.
It has also been reported that Apple asked its main iPhone supplier Foxconn to dismantle five production lines that were being used to manufacture the standard iPhone 14 in Zhengzhou, China. This would allow Foxconn to prioritize production of the iPhone 14 Pro.