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iPhone 14 Pro demand sees Foxconn set new record revenue

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Analysts have given conflicting views on iPhone 14 sales, but lead assembly partner Foxconn has reported a new monthly revenue record on the back of “storming” iPhone 14 Pro demand.

The company said that it is positive on the outlook for the current quarter, though remains cautious about the potential impact of continuing supply chain issues and inflation …

CNBC reports on Foxconn’s new revenue record in 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.

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 expressed cautious optimism for the holiday quarter.

While Foxconn maintained its full-year outlook, the company said Tuesday it is “cautiously positive” on the outlook for the fourth quarter.

“The dynamics of inflation, the pandemic, and the supply chain still need to be closely monitored,” Foxconn said.

There have been conflicting reports about iPhone 14 demand. Apple analyst Ming-Chi Kuo last month reported that Apple had asked Foxconn to boost iPhone 14 Pro production by 10%, before Bloomberg claimed that the Cupertino company had abandoned a planned increase of around 6M extra units by the end of the year. The latter report, however, said nothing about the split.

But strong iPhone 14 Pro demand appears to be backed by both reviewers and analysts. Reviewers almost universally said that anyone planning to upgrade to the base model iPhone 14 should think again.

Analysts Dan Ives and Amit Daryanani echoed this.

“In terms of the base [iPhone 14] compared to the price points, it’s just too compelling to [buy the iPhone 14 Pro]” – Ives

“The data continues to point to robust demand for the iPhone 14 Pro and Pro Max, which could have a materially positive impact for both mix and margins” – Amit Daryanani

Carrier “subsidies” – where the upfront cost of the phone is reduced to $200, $100, or even nothing – are also back in fashion, where the bulk of the cost is hidden inside monthly plan payments. Many consumers pay way more attention to the initial layout of cash.

Photo: Quinn Battick/Unsplash

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